European High Yield Prospects 20202019-12-20
Spread Research team has the pleasure to announce the publication of The European High Yield Prospects 2020.
The document analyses the unexpected rally and the favourable technicals in 2019, emphasizing the credit metrics outlook by sector and by rating and the more supportive underlying trends on the macro side as year-end approached.
The report also elaborates on ESG factors with an important potential impact on the European High Yield market. Spread Research has already integrated the G and S-factors in the credit analysis, with the E-factor as well as an overall ESG score expected to be released early next year.
After the strong performance in 2019 Spread Research team expects for 2020 a more modest return around 2-2.5%. The team sees a strong year in terms of new issues, with risks arising from newcomers and ongoing aggressive indentures.
Nevertheless, our analysts believe that outperformance can be generated by cutting exposure to some expensive defensive and non-cyclical names, by selectively playing some cyclicals and by being ready to make some bets.
Last but not least, we are very pleased to report that the Spread Research HY Portfolio Model has generated total return of +14.7% ytd.
The Spread Research EHY Prospects 2020 report is available on www.spreadresearch.com for our subscribers.
We are happy to discuss the topics of this report which our analysts will detail also during our European High Yield Conferences in Paris and London early next year.
To register at these events please follow the links:
- Paris 22 January : https://spreadresearchevents.cleverapps.io/EuropeanHighYieldConference.php
- London 4 February : https://spreadresearchevents.cleverapps.io/EuropeanHighYieldConferenceLondon.php
Happy New Year!
Spread Research Team