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ING Investment Management (ING IM) says that the current economic environment is supportive of the high yield bond market, and is predicting returns of between 7% and 9% during 2011. It also believes that default rates will fall to around 1%, which will contribute to continued support for the asset class. The asset manager says that there will be a buoyant supply of high yield bonds in 2011, and with the search for yield continuing, there should be large net inflows into the asset class. Hans Stoter, Head of the High Yield and Investment Grade Credit boutique at ING IM said: With a current yield of around 7% and a spread to similar duration government bonds of close to 5%, high yield bonds still offer strong potential for attractive returns. While yields on below...
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