Investors Flee Junk in Droves as Trade War Batters Markets

The transcript discusses the current state of the high yield bond market, highlighting selective buying opportunities due to spread widening. It compares investment grade bonds with high yield bonds, noting the former's recent outperformance. The conversation also touches on market dissonance, with treasury yields and inflation expectations affecting different sectors. Emerging markets are examined in the context of currency strength, particularly the dollar, and the potential impact of central bank rate cuts. Finally, the role of the Federal Reserve in stimulating risk assets and the global economy is analyzed.

What is the overall outlook for high yield bonds based on the current market conditions discussed?

What challenges does the dollar face in relation to emerging market investments?

How do the recent actions of the Federal Reserve affect risk assets and market expectations?