2016 Was a Good Year for Junk Bonds

The video discusses the exceptional returns of 2016, driven by a rebound in the energy sector. It explores the challenges of replicating such returns in 2017, especially with rising interest rates affecting high yield bonds. The discussion includes the potential impact of economic growth under the Trump administration on different bond categories. Tax reform and its implications for bond issuance are analyzed, highlighting the complexities of Paul Ryan's proposal. The video concludes with a focus on energy as a strong investment for 2017, while expressing caution towards healthcare.

What impact does tax reform have on high yield and investment grade credit as discussed in the text?

What is the speaker's strongest conviction trade for 2017 and what reasoning do they provide?