Junk Bonds More Attractive Than Leveraged Loans, Northern Trust's Robertson Says

The video discusses the debate between investing in leverage loans and high yield bonds, focusing on rate sensitivity and market dynamics. It highlights the attractiveness of both asset classes in a rising rate environment, with concerns about covenant light in leveraged loans. The tradeability of high yield bonds is emphasized, and a European perspective on investment strategies is provided. The importance of capital structure in investment decisions is also discussed.

In what ways do recovery rates differ between the bank loan market and high yield market during downturns?

What factors contribute to the perception of high yield markets being more attractive than leveraged loans?