GMO's Inker: High Yield Market May "Overshoot Fair Value As Defaults Rise"

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Ben Inker of Grantham, Mayo, Van Otterloo & Co. begins his latest fixed-income outlook on a somber note, pointing out that the Barclays U.S. Corporate High Yield index fell 4.5% in 2015 with a coupon of about 6% and duration of less than that five years. Translation? The average high-yield bond had about 200 basis points…