How Well Do You Know High Yield?

Do these statistics surprise you? While it may seem counterintuitive, the high-yield market’s quick rebound rate after downturns actually makes sense. Its consistent, high income makes it among the most resilient asset classes.

On average, high yield has rebounded from peak-to-trough losses exceeding 5% in just five months. What’s more, when it does rebound, it tends to go big. Over the 12 months following such losses, the global high-yield market returned 26% on average, and the US high-yield market averaged a whopping 27%.

That’s just one reason that sitting on the sidelines during periods of volatility can be a costly mistake.

High Yield By the Numbers
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The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.

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