Record High Yield Issuance Concerning But Not Threatening

Short duration high yield bonds are "fully priced" because of money flowing into ETFs, but the high yield sector remains in good shape overall, said Michael Kirkpatrick, portfolio manager for the RidgeWorth High Yield Fund. Kirkpatrick said the record issuance of high yield paper is worth watching and he has seen a slight decrease in quality as Wall Street works overtime to meet the demand. Nevertheless, he believes the excesses are limited and do not threaten the overall market. Kirkpatrick said he is most bullish on sectors with strong asset coverage like the cable and energy industries.