Our client Gimme Credit's High Yield Bottom Ten featured in Income Investing column
Back in July, independent bond research firm Gimme Credit published a list of 10 junk bonds analysts believe are likely to outperform. This week the firm shared its list of junk bonds likely to underperform with Barron’s (it first shared the list with clients last week).
They kick off the report:
The high yield market is frothy by most measures, with total return at 15.3% year-to-date through September 30th, already the strongest showing since 2012 when it was up 15.6% for the year. This has squeezed spreads to multi-year lows, leaving many lower quality issues significantly overvalued. We think the following bonds will underperform.