In my opinion (and not only mine of course) something is changing in the Bond Market.
For example this.
The High Yield has alreay spiked (as you can see on the figure1) and moreover if you look at it very well you can see there is also a 10ys cycle in the Default Rate. The 2 previous minimun have been on '88 and '98. All this let me think that we are very closed to a reversal.
In confirmation of this I have attached another figure where you can see the EMBI+spread. It seems it's turning around as well.
The Inflation Drift (Drive-force) it 's not the only (or the principal) cause of that.
We need to look at the economic cycle in different angles.
Interest rate - Recession - Default - Credit Crisis - etc.
So, to close this thread, in my personal portfolio there aren't this kind of Bond and there won't be in the next years.
Good trade !
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