While total returns on investment-grade bonds are up roughly 2% and returns on global equities are up about 1%, total returns on high-yield bonds have soared nearly 20% in Europe and the U.S. this year, according to Deutsche Bank. "The high-yield market was in a dire state at the end of last year. In many respects, the market has improved sharply since then, because it could not have got much more stressed," Deutsche Bank strategist Jim Reid said. "It is a good sign, as the outperformance tells us that investors are no longer expecting the global economy to collapse into a depression. We are now looking at recession instead."

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