AllianceBernstein's Smith Sees High-Yield Returns Topping 10% in 2023

The video discusses the potential for strong credit returns in 2023, particularly in high yield investments, with expected returns over 10%. It highlights the transition from inflation concerns to growth concerns, which may lead to wider spreads and higher defaults. This environment presents buying opportunities for investors, with current yields being attractive compared to historical levels. The video also compares current yields on T-bills and corporate bonds, emphasizing the benefits for long-term investors despite short-term volatility.

What is the expected trend for high yield credit returns in 2023?

• They are expected to decline significantly.

• They are expected to be strong, with potential returns over 10%.

• They are expected to be weak due to high inflation.

• They are expected to remain stable with no significant changes.

How do current yields compare to historical levels?

• Current yields are lower than historical levels.

• Current yields are about the same as historical levels.

• Current yields are more compelling compared to historical levels.

• Current yields are not comparable to historical levels.

What is a notable comparison made between T-bills and high yield corporate bonds?

• T-bills now offer yields similar to single B rated high yield corporate bonds from 2021.

• There is no comparison made between T-bills and high yield corporate bonds.

• High yield corporate bonds have lower yields than T-bills.

• T-bills have always had higher yields than high yield corporate bonds.

What is the expected yield for leveraged loans mentioned in the transcript?

• Around 11%

• Around 9%

• Around 7%

• Around 5%

What is the outlook for long-term investors despite near-term volatility?

• They will face constant losses.

• They are expected to be satisfied with the returns.

• They are likely to be disappointed with the returns.

• They should avoid investing due to high risk.