There are 3 ways HY investors tell us they are looking to generate excess returns this yr & all 3 on show this week.

1) Reach for yield. Rekeep book >2B for 350M deal (I hear, not confirmed). 7.25% coupon as noise around that credit. Soars to 103......

.....2) Take structure risk. Ineos unsecureds clearly outperforming secureds (broke 101/375 vs 100.25). Likewise Verisure subs outperforming. Meanwhile bkrs tell me there is reverse enquiry for PIKs and more divvy deals......

....3) Take duration on nc-life BBs to get capital appreciation. Key is to find credits think have positive story over time that outweighs any move in rates. Rising stars clearly best after Fiat got to 124. Netflix 2030s this wk +5 to 119.5, versus 2025s at +2.25 to 109.25.