Goldman now anticipates high-yield defaults to inch up to 3.2% by year-end from their current 1.9%. Nevertheless, the higher default rates are still below the 4% long-term average.
“There are some survivors and some companies that may not; but if you identify those that will survive, I think there is tremendous opportunity in energy high-yield,” Carl Eichstaedt, a portfolio manager at Western Asset, said in the article.
HYLD has a short 2.5 year duration and a robust 11.82% 30-day SEC yield. Potential investors should be aware that the actively managed ETF comes with a relatively more expensive 1.18% expense ratio.
AdvisorShares Peritus High Yield ETF
For more information on speculative-grade debt, visit our junk bonds category.
Max Chen contributed to this article.