Although people have been bullish on high-yield over the past few years, that sentiment has turned. Louis Cohen – senior managing director of Mackay Shields, which manages five fixed-income UCITs funds on behalf of Nordea Asset Management – would rather be contrarian. He contends that the market has been through numerous cycles, with many periods of market noise in between. While there remain some key risks in the market – such as the marginal risk that Europe starts to unwind – he is confident that the fundamental story for high yield is intact.
