Buying Junk Bonds Is the Top Contrarian Trade for 2024
Going long high yield credit seen outperforming regional bank debt, commercial real estate loans, majority in survey say
WATCH: MLIV Pulse: Best Bet Into Year End
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Worries about an economic downturn aren’t enough to dissuade market participants from being bullish on risky debt as their top contrarian trade, according to the latest Bloomberg Markets Live Pulse survey.
Despite heavy outflows in 2023 and countless warnings about the health of heavily indebted companies, 52% of 506 respondents see opportunities in high-yield bonds, while remaining more cautious on some of this year’s laggards including regional bank debt and commercial real estate loans.