207. Why now is the time to be selective and different in the high yield bond space

Man GLG fund manager Mike Scott explains why credit spreads are the major driver of returns in the high yield bond market and the importance of not only being selective, but also different, in choosing companies amid a weaker economic backdrop. He also highlights the role of cash flows in this environment and the focus on targeting businesses with recession proofing characteristics over a number of cyclical names. Mike also addresses the role of inflation in the high yield bond space and the performance of the US energy sector.What's covered in this episode:Why credit spreads are the major driver of returns for high yield bondsThe importance of the underlying credit quality of a business in this environmentThe need to focus on cash flows, particularly in uncertain timesThe robust state of the US energy market compared to recent historyTargeting recession proof businesses over cyclical credits and the importance of being selective in this environmentBusinesses that can flourish or flounder in an inflationary backdropLearn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.