Nomura's Insight

High Yield Bond 2023 Mid-Year Outlook


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Author: Guadalupe Barriviera

  1. The US High Yield Market recovered smartly in the first half of 2023, an encouraging development following last year’s challenges.
  2. Despite the rally, yields remain attractive, fundamentals and market technicals are supportive, and Nomura believes the asset class’ outlook is favorable for the second half of the year and into 2024.
  3. The current environment offers investors a favorable opportunity to increase portfolio allocations to high yield bonds.