Junk-Bond Bulls Ready to Run as Pimco, Goldman Say Rout Overdone
- Problems in worst parts of market have `an exaggerated effect'
- There's wide divergence between equities and high-yield debt
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Junk bonds are poised for their first annual loss since 2008, and the list of companies headed for trouble is swelling. Yet to Mark Kiesel, who helps run one of the world’s biggest debt funds, the bonds haven’t been this attractive in a long time.
"Credit hasn’t looked this good in six years, and high-yield looks especially
attractive," said Kiesel, the chief investment officer for global credit at Pacific Investment Management Co.