Due to this year’s economic and market turmoil 2022 will go down in history as one of the worst years for bond investors. Credit conditions could become a lot worse if we start to see a prolonged recession in 2023. But at the same time, bond investors welcome the renaissance of high interest rates. High yield can rightfully be called high yield again and offer opportunities in 2023 says Jonathan Butler. Jonathan is Head of the European Leveraged Finance Team (high yield and bank loans) at PGIM Fixed Income. He expects the economy to remain in a ‘benign default environment’ for the next few years.
