ORLANDO, Florida, Nov 16 (Reuters) - The U.S. high yield bond market is the dog that has rarely barked, never mind bitten, during the Federal Reserve's most aggressive interest rate-raising campaign in 40 years.
The 'junk' bond market may also contain less junk than it used to.
But changes in the composition of a leading high yield corporate bond index over recent years suggests this might be the case.
"The high yield index is a higher quality index than in cycles past," reckons Bill Callahan, investment strategist at Schroders.
It is now below 400 bps, and high yield bond investors are the most overweight since January, BofA's latest survey shows.
Persons:
Bill Callahan, BofA's, Ashwin Krishnan, Morgan Stanley, Jamie McGeever, Marguerita Choy
Organizations:
U.S, ICE, Schroders, Bank of, North America, Reuters, Thomson
Locations:
ORLANDO, Florida