Investing in High Yield Bonds
With rates on the move, keep your goals on track.
Our expertise
The teams are positioned globally across US, Europe and Asia, providing resources to meet the needs of a large, global client base.
The investment teams employ a consistent investment process which has been tested over a range of market cycles and conditions. This process is centred on the philosophy that the key to superior long-term returns in the fixed income market is compounding current income and avoiding principal loss through fundamental credit analysis and macroeconomic research.
Our strategies
Our strategies all follow a robust bottom-up credit research process that focuses on identifying companies with improving credit trends, while the top-down component seeks to identify risks and opportunities associated with the overall economy and market.
In this way we aim to minimise default risk and manage volatility through active management, while pursuing high yielding opportunities and potentially generating capital growth
Global High Yield Bonds Strategy
Investing across the full spectrum of the global high yield universe.
US High Yield Bonds Low Carbon Strategy
Taking a sustainable investment approach to investing in mainly US high yield bonds.
US Dynamic High Yield Bonds strategy
Investing mainly in US high yield market with the ability to position differently duration, geographic or sector and issuer allocation compared to the ICE BofA US High Yield Master II benchmark index.
US Short Duration High Yield Strategy
Investing in US high yield bonds with life terms or expected redemptions of 3 years or less.
US Enhanced High Yield Bonds Strategy
Investing mainly in short duration high yield debt securities of US domiciled companies with the ability to implement leverage through total return swaps.
Europe Short Duration High Yield Strategy
Investing in high yield European currency debt markets.
US High Yield Bonds Low Carbon Strategy
Taking a sustainable investment approach to investing in mainly US high yield bonds.
AXA WF Asian High Yield Bonds
Investing dynamically to mainly high yield debt securities issued in the Asian fixed income universe.
Why invest in high yield bonds?
High yield bonds offer a number of potential benefits, alongside some specific risks such as higher volatility and higher default rates. For those in a position to take on higher levels of credit risk, high yield bonds may provide a significant yield enhancement to a well-diversified portfolio.
In addition to higher income than investment grade bonds, high yield often behaves differently to other areas of the fixed income universe so may provide important diversification to a broader fixed income portfolio.
Like equities, high yield bond prices can increase as a result of improved performance of the issuing company or a wider economic upturn. However, the typically higher income component of high yield bonds means that they are generally less volatile than equities.
High yield bonds are typically issued with shorter maturities than many investment grade bonds (generally less than 10 years) and, therefore, tend to have relatively lower duration. This means a high yield strategy may be less exposed to interest rate risk than most investment grade strategies.
Risks
No assurance can be given that our investment strategies will be successful. Investors can lose some or all of their capital invested. Our high yield strategies are subject to risks including, but not limited to: liquidity risk, credit risk, counterparty risk and the impact of any techniques such as derivatives. The use of such strategies may also involve leverage, which may increase the effect of market movements and may result in significant risk of losses.
Fixed Income
We cover a broad spectrum of fixed income strategies to help investors build diverse portfolios that can be more resilient to economic and market shifts.
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