A quick look on where we sit just a bit over halfway through the year.
Global Equities:
Notable to me is Brazil being near flat.
Short ends of these rate curves, notably US / CA / AU vs the rest is interesting. Also note the US 2Y yield eclipsing the US 10YR yield.
US and EU high yield spreads:
I’ve been looking at the US HY spread in prior writing, and think a lot points to this being a good time to add exposure to that slice of risk. Oaktree Capital, a premier opportunistic debt investment manager, specifically indicated:
“In roughly six months, the average yield spread in the [HY] asset class has widened by more than 200 basis points to reach nearly 550 bps. With yield spreads at this level, we think investors are well compensated for default risk.”
Oaktree Capital
And economic numbers, with the US printing negative QoQ GDP growth:
Also note negative policy rates in Europe versus their high single digit CPI numbers. Yikes!