High Yield Bonds

Investment approach

Through a combination of top-down and bottom-up analysis, our High Yield Bond approach relies on a tactical multi-strategy style whereby portfolio positioning across the credit spectrum, detailed security analysis as well as active duration management all constitute opportunities for generating value. Our approach to high yield security selection is conservative and prudent and focuses on companies that possess strong assets, are run by an experienced management team with a track record of success, and offer a superior level of liquidity.

Key Characteristics

  • Historically equity-like returns with capital appreciation and lower levels of volatility
  • Higher yields than traditional fixed income
  • Enhanced portfolio diversification
  • Low to negative correlation to other asset classes
  • Stronger yield can be beneficial in rising rate environment
  • Improved market dynamics and sound risk profile lead to increased demand for this asset class