Neuberger Berman Shrugs Off Fears Around Junk Bond Market
- Sharp increase in defaults is couple years away, Bommi says
- Debt of cable, telcos offer good opportunities amid slowdown
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One of the world’s largest employee-owned money managers, which has started more high-yield bond funds in recent years, is shrugging off fears that a global economic slowdown and trade tensions will hurt the asset class.
“The market is very attractive, given that the fundamentals are still very good and corporate credit quality is still good,” Vivek Bommi, a senior portfolio manager at Neuberger Berman with $323 billion in assets, said in an interview. A recession combined with a sharp increase in credit defaults are a couple of years or more away, according to London-based Bommi, whose Neuberger Berman Global High-Yield Bond Fund beat 87% of its peers in the past year.