Marathon’s Richards Says High Yield Is Fully Priced in This Market

The video discusses the current state of the high yield bond market, highlighting the tight spreads and low yields. It predicts challenges for the market in 2020, with limited potential for spread tightening and a fully priced market. The speaker suggests reallocating investments from high yield bonds to structured credit, benefiting from strong housing and consumer markets. The video also addresses credit rationing, particularly affecting lower-rated companies, and anticipates an earnings recession rather than an economic recession in 2020, with global growth supported by resolved trade tensions.

What does the speaker mean by 'the bubble is getting tighter'?

How are distressed funds influencing the market according to the speaker?

What are the implications of the leverage ratios being higher than ever for companies?