4. Given the flattening of the yield curve, short-term bond yields are the highest they’ve been since 2009, especially when adjusted for interest rate risk. We believe short-term bonds now provide attractive relative value versus intermediate-term bonds.
5. The high-yield bond sector has been one of the best-performing bond sectors this year, significantly outperforming investment grade credit. High-yield has benefitted from lighter issuance in 2018 and a preference for debt issuance in the floating-rate loan market.
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