High-Yield: UBS “Barbarians at the Gate”

High-yield update from UBS: Barbarians at the Gate

Recent credit market stress has captured the attention of all market participants due to its speed and ferocity.

UBS's Global Credit Strategy team summed up the events of the past few days in a research note issued to clients yesterday. Titled Barbarians at the Gate, UBS's credit strategists Matthew Mish and Stephen Caprio tried to answer some critical questions credit investors have been asking during the past few days.

See also:

• What Are The Credit Markets Telling Asset Allocators?
• Bonds: Deutsche Bank Warns “a new stage of liquidity deterioration”

Question one: How bad has the high-yield sell-off been?

As noted above, the sell-off, which started at the end of last week has been...