High Yield Outlook

Nomura: Cautious Optimism in 2023


Pixabay CC0 Public Domain

Author: Cecilia Caminos

  1. NCRAM forecasts a mild recession in 2023, but the Fed’s likely pause in 1Q and the potential for easing later in the year creates a move favorable investment environment.
  2. "High yield fundamentals are reasonably strong, while market technicals are very supportive."
  3. Yields near 9% compensate investors for the risks of investing in high yield. NCRAM forecasts 10 -12% returns over the next 12 months.