The anticipated divergence in monetary policy between the US and the eurozone is moving many markets. Junk bonds could be a key battleground for 2016.

High-yield bond markets have been in choppy waters. Yields have been rising since mid-2014 and now stand at 8% in the US and 4.8% in Europe. Returns this year have been poor in the US, where the high-yield market is down 2.2%, according to Bank of America Merrill Lynch indexes, and modest in Europe, up 3.4%. Higher yields do make the asset class more attractive, but they also reflect building headwinds.