Interview with Thomas Hanson, Head of Europe High Yield of Aegon AM

“The Structural Case for High Performance in High Yield Remains Intact”


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Author: Guadalupe Barriviera

  1. "Despite macroeconomic uncertainties, high-yield credit fundamentals are in relatively good shape”.
  2. "There is no doubt that downgrades and defaults will tend to increase as the cycle changes, but the higher-quality nature of the market and solid fundamental starting point could also help limit defaults compared to previous downturns”.
  3. “We have been adding exposure in higher-quality, BB-rated bonds with attractive yields. There will be a time to increase allocation to lower-rated high yield, however downside risks remain and we think it is prudent to be modestly defensive in this environment".