A more detailed explanation is on the Market Views tab on the left but here are the headlines:
1. Don't Fight the Fed (or the ECB): Both central banks, and others, have dealt with once-in-a-lifetime crisis situations. Their balance sheets are infinite in size...bigger than anyone else's.
2. Companies are in Great Shape: Companies, specifically HY issuers, have high cash balances, low leverage, high interest coverage, and low refinance risk. Very strong macro fundamentals.
3. Commercial Banks are Lending: For the first time in 3.5yrs, US commercial banks are starting to lend on a more traditional basis. the asset classes of: loans and leases, commercial and industrial, credit and even real estate are all increasing. Very strong for credit as well.
All three of these themes are significant positives for high yield.