HSBC Analyst Highlights Appeal of Short-Term U.S. High-Yield Bonds Amid Low Volatility

HSBC's Song Jin Lee has highlighted the attractiveness of short-term U.S. high-yield bonds due to their low volatility. According to Jin10, Lee noted that concerns over fiscal risks have led to increased volatility in long-term U.S. Treasury bonds, which in turn affects longer-term credit assets. He emphasized that short-term high-yield bonds can offer a degree of hedging against volatility driven by fiscal concerns.