Scrapping the bottom-of-the-barrel for yields

It has been a profitable ride especially for Asian credit investors buying into rated and unrated high yield bonds issued by a plethora of Asian companies over the last 2 years.  Credit spreads have tightened significantly from the wides in 2008 but are still higher than the pre-2008 crisis levels.  A number of friends who have been doing well ”earning the carry” and had never sold out during the number of scares when credit spreads widened temporarily have asked me whether it’s time to exit.

Click to read on, http://asianmacro.wordpress.com/2014/05/06/scrapping-the-bottom-of-the-barrel-for-yields/