Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

DoubleLine’s Baha Says Junk Bonds on ‘Overvalued Side’

Don't Miss Out —
Follow us on:

June 11 (Bloomberg) -- Speculative-grade corporate bonds are on the “overvalued side,” according to Bonnie Baha, director of global developed credit at Los Angeles-based DoubleLine Capital LP, which manages about $50 billion.

Baha, who was speaking with Erik Schatzker on Bloomberg Television’s “Market Makers” today, said she likes bank loans and emerging-market corporate bonds.

Speculative-grade bond yields in the U.S. fell to a record-low 5.78 percent yesterday, according to the Bank of America Merrill Lynch U.S. High Yield Index.

The average price of the S&P/LSTA 100 index, which tracks the largest first-lien loans, climbed to 98.82 cents on the dollar yesterday, the most since Jan. 24. That’s close to a seven-year high of 98.9 cents reached earlier this year.

High-yield, high-risk debt is rated below Baa3 by Moody’s Investors Service and lower than BBB- at Standard & Poor’s.

To contact the reporter on this story: Matt Robinson in New York at mrobinson55@bloomberg.net

To contact the editors responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net John Parry, Chapin Wright

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.