Restoring default settings

High yield default rates from 1983 - 2013

The maturity cliff for high yield does not begin to look daunting until 2017. That is one reason why default rates have been significantly lower than their long-term average over the past decade and why they may stay low for a few years yet. A rise in defaults might be that elusive catalyst for a sell-off. But the current environment is very benign.

Alex Veroude, Head of Credit, Insight Investment

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