INCOME
EATON VANCE
Looking beyond traditional sources of yield
FEBRUARY 2017 TIMELY THINKING
High-yield bond outlook: Cautious optimism for 2017 following banner year Michael Weilheimer, CFA Director High-Yield Investments Jeff Mueller Portfolio Manager High-Yield Investments
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drove high-yield bond returns to 17.5% in 2016. ■■
Kelley Baccei Portfolio Manager High-Yield Investments Steve Concannon, CFA Portfolio Manager High-Yield Investments
A rebound in the energy and metals and mining sectors
Fundamentals of high-yield issuers improved in 2016, while supply and demand were also supportive of tighter spreads.
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Strength in commodities and overall improvement in earnings have put downward pressure on defaults – a
Will Reardon Institutional Portfolio Manager High-Yield Investments
trend we expect to continue in 2017. ■■
We are cautiously optimistic about the prospects for 2017, but see nothing close to the exceptional returns of 2016.
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