Energy Slump Creates High Yield Bond Opportunities

Exposure to the struggling energy sector has unquestionably been an albatross for US high yield, but investors may be overestimating the impact of energy weakness

J.P. Morgan Asset Management 22 March, 2016 | 2:39PM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Bill Eigen, manager of the JPMorgan Income Opportunity Fund explains how the bruised US high yield credit market is compensating investors incredibly well.

Investor risk sentiment has taken a battering and the US high yield market has the bruises to prove it, but the sector also offers tremendous value – in fact the sector is one of my highest conviction investment ideas.  

The case for US high yield based on three considerations:

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
JPM Income Opp A perf (acc) USD201.85 USD1.05

About Author

J.P. Morgan Asset Management  is the investment arm of JPMorgan Chase & Co. and it is one of the largest active asset managers in the world.

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