MFS Investment Management

Brad Rutan (MFS IM): “Some Believe Over 300 Billion US Dollar of BBB Rated Debt Could be Downgraded to High Yield”

Date:

Brad Rutan (MFS IM): “Some Believe Over 300 Billion US Dollar of BBB Rated Debt Could be Downgraded to High Yield”

Author: Meritxell Sedó Paredes

  1. It is getting late in the credit cycle, and investors should be reducing their risk exposure before there is a cycle contraction and the liquidity dries up
  2. Over the past decade, while high yield corporate spreads have been declining, spread widening events have been smaller and shorter in length
  3. In the last two decades, there have been significant changes in the composition and quality of the investment grade universe of bonds