In this video, Rebecca Young, Portfolio Manager within the Strategic Fixed Income team, explains why there is more than meets the eye in the US high yield market and discusses the teams approach to achieving ‘sensible income’.
Key takeaways:
  • The US high yield market has produced attractive returns year to date at a time where there is continued demand for yield
  • However, there is an increasing level of dispersion in the market, whereby fewer bonds are trading at or around the credit spread of the index
  • Sticking to a sensible income approach to investing can help the team to achieve a reliable, stable income stream for investors

 

The index quoted is the ICE BAML US High Yield Index in US dollars, 11.5% year to date return as at 12 September 2019.
 

This video was recorded on 12 September 2019.