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High Yield and Bank Loans: A Tale of Two Markets
by Hozef Arif, Beth Maclean, Sabeen Firozali of PIMCO, 12/17/18

Recent fundamental changes in the leveraged finance markets mean that actively managing credit exposure is more important than ever.

Credit Markets: To BBB or Not to BBB?
by Hozef Arif, Jelle Brons, Lillian Lin of PIMCO, 11/16/18

Financial media and investors have been focusing on the BBB segment of the U.S. investment grade (IG) corporate bond market this year.

High Yield Bonds: A Fresh Look at BB Rated Credit
by Hozef Arif, Matthew Livas of PIMCO, 6/26/18

With the economy in the later stages of its post-crisis recovery, we believe investors should be cautious and selective on corporate credit. Within the high yield sector, this caution may warrant a move up in quality toward the higher end of the spectrum: BB rated bonds.

Corporate Crossover Bonds in the Sweet Spot
by Hozef Arif, Michael Brownell of PIMCO, 10/11/17

The unique attributes of corporate crossover bonds may offer solutions for investors assessing a range of objectives and risks.

Crossover Bonds: Catching the Rising Stars
by Hozef Arif, Michael Brownell of PIMCO, 8/19/15
Many investors seeking yield in the current low interest rate environment are reluctant to take on high risk. Corporate crossover bonds, which straddle the line between the investment grade and high yield bond markets, may offer a solution.

Avoiding Losers Is as Important as Picking Winners in High Yield Markets Today
by Andrew Jessop, Hozef Arif of PIMCO, 4/8/14
Although high yield bonds span a broad range of sectors, industries and individual credits, their yields today tend to fall within an increasingly narrow range. Narrow dispersion means portfolio decisions that target outperformance should now be guided by avoiding deteriorating credits as much as by selecting the most attractive rising stars. Strategies for picking the rising stars can extend to CCC rated credits where agency ratings lag the improvement in the underlying credit profile.

High Yield in 2014: Where Can You Look for Upside in a 'Medium Yield' Market?
by Andrew Jessop, Hozef Arif of PIMCO, 1/30/14
Default rates and credit losses in high yield markets remain below their long-term averages, and we believe default rates will remain low in 2014 and 2015 as well. Investors should consider positioning for better convexity via exposure to sectors with favorable industry dynamics and positive event risk from M&A or equity offerings, potential upside from price recovery in high quality bonds trading below par and exposure to select new supply from former investment grade companies.

High Yield and Equities Mind the (Equity) Gap
by Hozef Arif of PIMCO, 10/9/12
High yield bonds returned 12% through September, even as corporate defaults continued to rise, albeit gradually. While the default rate is an important market metric, it has been a lagging indicator of high yield bond total return performance. Investors should closely monitor equity markets for signals on where high yield spreads may go.

U.S. High Yield: A Closer Look at Junk Spreads
by Hozef Arif of PIMCO, 6/19/12
Investors are cautious about high yield bonds which have become more volatile following strong performance and inflows earlier this year. We believe the cyclical bottom in default rates is behind us, and based on a tightening in lending standards compared to last year, we expect a gradual increase toward the mean in default rates and credit losses in 2012.
9 results found.