The Q2 2022 European High Yield Survey Results Are In!

 

Thank you to Everyone who took part, especially to Mahesh for his analysis.

Overall there appears to be some recognition that  valuations have cheapened since the Q1 survey, but still overwhelmingly viewed as “Fair”.

Positioning has moved to net overweight and the percentage of investors expecting a negative return for the asset class has reduced to 28% from 38%, whilst those investors expecting a positive return have increased to 39% from 36% a quarter earlier.

Sector wise Financials remain the largest overweight whilst communications are no longer the largest net underweight as Investors shunned Cyclicals in Q2. European high yield is no longer favoured over its US counterpart with 35% of respondents backing the asset class vs. 55% in Q1.

Defaults expectations remain low – but are inching up as are cash balances with 83% of respondents reporting a net cash position vs. 76% in Q1.

The full analysis by Bloomberg Intelligence can be downloaded here

Join Mahesh and I on the 28th of April at 9 a.m. UKT for a Bloomberg Intelligence hosted webinar where we discuss the latest survey and the path ahead. Register here