Continue reading this on our app for a better experience

Open in App
Floating Button
Home Capital Yield watch

The impact of Covid-19 on global high yield

Sunita Kara
Sunita Kara • 6 min read
The impact of Covid-19 on global high yield
Credit spreads widened sharply in March as investors reallocated from higher risk assets to safer ones.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Mar 8): Credit spreads widened sharply in March as investors reallocated from higher risk assets to safer ones. Companies struggled to access bond markets as a result. Credit-rating agencies have also downgraded many companies as more countries have gone into lockdown, hurting all borrowers and weaker ones in particular.

At the same time, the speed and scale of combined policy responses by governments and central banks have been unprecedented. The vulnerabilities in the high-yield market — highlighted by negative total returns seen in March — could be somewhat offset by the crisis response measures. Although there can be no guarantees, particularly given the uncertainty over the duration of this health crisis and the economic shock it has triggered, investors may look back on this period as an attractive entry point into high yield.

What vulnerabilities has the spread of Covid-19 highlighted in the market?

To continue reading our premium articles,
Upgrade your subscription to as low as $8.33/month to gain unlimited access to ALL of our premium articles!
Have an account? Sign In
×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2025 The Edge Publishing Pte Ltd. All rights reserved.