Vanguard Group, the world’s second-largest money manager, is wary of junk bonds given how expensive they’ve become. “Where the market is today doesn’t leave a lot of room for negative surprises,” Michael Chang, head of high-yield corporate credit at the $11 trillion asset manager, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Matthew Geudtner in the latest Credit Edge podcast. “Spreads are pretty tight, yields are about average — it’s not the best time to be investing in high yield,” Chang says. They also discuss Vanguard’s preference for debt from utilities and consumer staples companies, how to get extra yield from leveraged loans and how to profit from liability-management exercises.

<p>Vanguard Group, the world&rsquo;s second-largest money manager, is wary of junk bonds given how expensive they&rsquo;ve become. &ldquo;Where the market is today doesn&rsquo;t leave a lot of room for negative surprises,&rdquo; Michael Chang, head of high-yield corporate credit at the $11 trillion asset manager, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Matthew Geudtner in the latest Credit Edge podcast. &ldquo;Spreads are pretty tight, yields are about average &mdash; it&rsquo;s not the best time to be investing in high yield,&rdquo; Chang says. They also discuss Vanguard&rsquo;s preference for debt from utilities and consumer staples companies, how to get extra yield from leveraged loans and how to profit from liability-management exercises.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

The Credit Edge by Bloomberg Intelligence

Vanguard Says Junk Bond Pricing Leaves Little Room for Negative Surprises

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