High yield debt may be growing increasingly expensive, but it is not in bubble territory, said Gershon Distenfeld, portfolio manager for the Alliance Bernstein High Income fund. Distenfeld said investors are buying high yield for income, not to get rich, which is what happens in a bubble. He also said that European sovereign high yield bonds are a good value due to an accommodative ECB and an economic rebound. Finally, he said that the high yield default rate remains low and the quality of supply remains fairly good except for very low end corporate bonds.

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