Optimistic Outlook for High-Yield Bond Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: CNBC
- High-Yield Bonds Outperform: According to BondBloxx, high-yield bonds have outperformed Treasuries, investment-grade corporates, and mortgage-backed securities on an annualized basis over the past decade, demonstrating their relative stability and appeal amid market volatility.
- Improved Market Quality: The high-yield market has seen a significant reduction in risk, with higher-quality bonds making up a larger share, as many companies have become more profitable and larger in market cap, thereby boosting investor demand and confidence.
- Positive Earnings Reports: In the latest earnings season, a greater number of high-yield bond issuers exceeded market expectations, with a higher proportion of positive forward guidance, reflecting companies' focus on refinancing debt post-pandemic, which further strengthens the high-yield market's foundation.
- Investment Strategy Recommendations: Bianco from BondBloxx suggests that investors consider high-yield bonds as 10% to 15% of their fixed-income allocation, emphasizing the need to pay attention to the risk characteristics of these bonds, as they trade more like equities.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 189.770
Low
180.00
Averages
309.59
High
400.00
Current: 189.770
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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