Homebuilder Bond Rally Unsustainable, Baha Says

Investor interest in homebuilder high-yield bonds, which have tightened twice as much as the overall high-yield market since the beginning of the year, is a temporary shift largely driven by a technical demand for yield, according to Bonnie Baha, the head of global developed credit at DoubleLine Capital, which oversees $40 billion.

“It’s hard for me to see a sustained improvement in the homebuilding market before I can see a sustained improvement in employment,” said Baha.

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