Marty Fridson: Yet higher for high yield


Looking at past economic recoveries, declining default rates have bolstered high yield returns – and there’s no reason to think this recovery will be any different.

Investors cannot be blamed for wondering whether the recovery in the high yield market has run too far, too fast in 2009. By the end of October, the Merrill Lynch High Yield Master II Index had posted a staggering 51.19% return. To put that number into perspective, the Standard & Poor’s 500 index has not returned as much as 50% in an