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

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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