US high yield: using underlying fundamentals to steer through uncertainty

As markets have moved closer to a consensus that developed markets, including the US, have entered “late cycle”, a prevailing question needs answering: What do we do with our investments in the high-yield bond market? 

The US Federal Reserve’s (Fed) commitment at its March meeting – to keep interest rates on hold and end its balance sheet reduction in September – seems a long way away from the tightening stance it held just a few months earlier.