According to Barclays' research, given the relatively high yields and attractive investment opportunities in the global high yield market, the investment rationale for the global high yield market remains convincing, and the bank expects the overall performance of the global high yield market to be positive in 2024. However, this does not mean that the market is without risks in the coming months. The upcoming US presidential election, as well as ongoing conflicts such as the Russia-Ukraine war and the Middle East war, could bring about fluctuations in the market. Although overseas yield differentials have mildly narrowed since the beginning of the year, the relatively high yields and attractive market performance continue to attract investors to the global high yield market. While the possibility of rate cuts by the Federal Reserve is constantly changing, the environment of "sustained high rates for an extended period" seems likely to continue for some time, providing support for this asset class, especially in a strong fundamental and technical environment. Indeed, there are still some risks in the global market in the coming months that could cause fluctuations. However, so far, the global high yield market has proven its strength and is expected to continue to be in a favorable position. Barclays mentioned that overall, corporate profitability continues to moderately increase and align with market expectations, with companies generating enough cash flow to repay debt and meet capital expenditures. As many global high yield bond issuers have been strengthening their financial positions in recent years, their overall financial conditions remain solid. For example, the net leverage ratios in the US and Europe are still low at around 3.4 times and 4.5 times, respectively. Market credit quality continues to improve, further reflecting the overall strength of issuers. The proportion of BB-rated bond issuers in the global high yield bond index is at 55%, close to historical highs, while the proportion of CCC-rated bond issuers is around 11%, roughly half of what it was ten years ago. From a technical perspective, strong and positive market forces continue to dominate the global high yield market. On the bond side, the market size has shrunk by around $250 billion (close to 15%) over the past two years, indicating fewer investment opportunities for incoming funds. This is partly due to some private equity firms struggling to find buyers for companies they acquired or restructured during the low-interest rate period in recent years, leading to a decrease in M&A activity. Although refinancing activity has started to increase, with expectations for this momentum to continue until the end of the year, new issuance activity remains calm. Over the past 18 to 24 months, as some companies have taken substantial measures to repay debt and increase liquidity, some high yield credits have been upgraded to investment grade, contributing to the shrinking of the bond market size. Looking ahead, these positive technical factors are expected to continue supporting the market. Barclays points out that due to the market's strong fundamentals and technical aspects, the investment rationale for global high yield bonds remains convincing, and the market is expected to achieve good returns this year. The total return prospects of bonds are attractive. Although spreads are still close to historic narrow levels and remain a focus of investor attention, the appeal of investing in bonds is not only due to spreads. For instance, this asset class has a shorter duration. The average duration of this market is only slightly over 3 years, indicating that bonds are better able to avoid the impact of interest rate fluctuations than in the past. Another key feature of this market is its callability. Although spreads and worst-case yields are based on the bond's legal maturity date, most global high yield bond issuers refinance before that date. Early redemption can have a significant impact on returns; when bond prices are discounted relative to face value, yields usually increase by 50 to 100 basis points, as is currently the case. According to the bank's estimates, around 25% of bonds in this market are currently trading at a discount.