China’s high-yield bond market has been under incredible strain in recent months, with prices tumbling by nearly 40% since May. We’ve worked with our economists and LGIM’s high-yield team to determine whether this represents a deep value opportunity or trap.
Everyone seems to agree rates will need to go up. Few have confidence about how high. And there’s even less clarity about how inflation will be affected by potential megatrends: climate-related border taxes, global work from home forever, and post-pandemic early retirement. ;