HY rout tempts some, worries others

摘要

The collapse of third avenue's high-yield fund did not spark the junk bond meltdown that some had feared, and a knee-jerk sell-off in fact brought buyers back to the asset class. The sudden collapse of the US$800m Third Avenue Focused Credit fund - the largest mutual fund failure since 2008 - helped to push high-yield spreads out to four-year highs. Prominent investors, including Janus Capital's Bill Gross and Omega Advisors' Leon Cooperman, now say that junk-bond valuations are starting to look attractive compared with stocks.