U.S. high yield takes a fall
By Larry Rothman With high inflation persisting, the Federal Reserve recently raised short-term interest rates by 75 basis points, the largest one-time increase since 1994. As the Fed continues hiking rates, this raises the risk that the central bank will go too far in combating inflation and tip the U.S. economy into a recession. As a result, high-yield spreads could widen further than they already have this year since cash flow would come under pressure, raising the risk of financial...
