High-yield funds will see more outflows: GAM's Flaherty


GAM's high-yield fixed income strategist Jack Flaherty tells Reuters Insider that high-yield bond valuations are a little stretched right now, and he thinks there may be weakness in the market as interest rates rise. "You can't argue that high-yield is cheap right now; by any measure it's kind of stretched. Again, the fundamentals are supportive, so it doesn't mean that you're expecting default rates to jump at all, but you do see where people are saying 'Oh,' you know, 'I gotta think about what we have in this asset class,' and you're starting to see some outflows and I think you're going to see signs of more outflows ... by the end of the year."