HY star Cohen: every reason to underweight Europe right now
European high yield bonds are overpriced and offer lower returns than their US counterparts, reports Citywire Global. Lou Cohen, manager of MacKay Shields, said most of the companies in Europe are operating in materially weaker markets than the US right now. On average, he thinks US bonds offer a much better credit quality, a higher treasury base component, and a higher spread. Referencing the Nordea 1 – Unconstrained Bond fund, managed by Citywire + Dan Roberts, Cohen adds that the asset management group has been shortening two-year treasuries for the past two years.