High Yield Selloff A Buying Opportunity Says Brandywine Manager

The volatility roiling the high yield market is creating a buying opportunity, said Gary Herbert, Portfolio Manager for the Legg Mason Brandywine Global High Yield Fund. Herbert said he is especially bullish on European mortgage bonds despite worries about a German economic slowdown because of the quality and elevated yield on the issues. He added that the default rates remain low on corporate issues globally because of strong earnings and healthy balance sheets. Finally, Herbert said he has been adding to his position in the energy space despite the collapse in commodity prices.