This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Don’t Fret High Yield Market Says Western Asset Strategist

7/31/15 11:44 AM EDT
The concerns about liquidity in the high yield market are real. Nevertheless, they should not keep investors from increasing their exposure to high yield funds, said Don Plotsky, head of the product group at Western Asset Management. 'The market dynamics have changed as the banks have been starved for capital on trading desks, so they are not there to step up when things get difficult in the market. That’s really more of a technical concern about high yield,' said Plotsky. 'The day will come when there is stress in the market and high yield trades off because of that stress, but what we really focus on are the fundamentals of the issuers in the market.' Plotsky added that Western has a list of bonds that it will scoop up when they trade off in the market. In his view, investors should trust its seasoned portfolio managers to find those issues instead of running away from the asset class entirely. The Western Asset High Yield fund is up 1.1% year-to-date and sports a trailing 12 month yield of 6.5%, according to fund-tracker Morningstar. As to the energy sector which sank the entire high yield market in the fourth quarter of 2014, Plotsky said many oil companies with solid financials were unnecessarily sold off in a panic.
Stocks in this video: LMWAHYXMHFMTT
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
Top Rated Stocks Top Rated Funds Top Rated ETFs