Insights

Get insight into why high yield bonds may be an attractive diversification tool in our lower-for-longer interest rate environment.

Credit markets continued their fast start to the year, posting solid returns in February. The duration-sensitive Barclays Agg declined modestly, underperforming credit indices.

To help answer the question, “Is now the time to own high yield?,” Robert Hoffman looks at the current fixed income environment as well as the performance of high yield and traditional core fixed income assets over previous market cycles.

Following a month of heightened volatility, the leveraged credit markets rebounded in January. High yield bonds posted their largest monthly return since 2009 and senior secured loans erased all of the declines experienced in December.

This week’s chart shows just how quickly sentiment can shift and why active management may help uncover opportunities.

This week’s chart shows just how quickly sentiment can shift and why active management may help uncover opportunities.