Credit may not replicate the strong performance of March and April this month, but high yield (HY) should continue to outperform, bar a major risk-off episode (which is not our base case). Within credit, HY should continue to outperform, given creeping duration concerns and risks of oversupply in investment grade (IG). Against equity, HY should also continue to outperform, as lacklustre revenue and earnings growth continue to weigh on equity multiples.
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