High Yield Corporates

The global high yield (GHY) market, which we define as the worldwide market for below-investment grade corporate credit, regardless of domicile, has grown dramatically over the past two decades. The representative index, the ICE BofA Global Non-Financial High Yield Constrained Index covers the U.S. High Yield Index, Pan-European High Yield Index, High Yield CMBS Index, and non-investment grade portion of the Global Emerging Markets Index.

While the U.S. high yield sub-component still represents a significant segment of the GHY market, the European and Emerging corporate debt high yield markets have been expanding at faster rates. At the beginning of 2000, the U.S. represented approximately 94% of the global high yield market. This declined to approximately 33% U.S. market share by early 2021, with the remainder representing European and Emerging Markets high yield corporate debt.

Stone Harbor has been managing the Global High Yield strategy since 1996.

We offer a flexible range of high yield portfolios that may be customized to focus on specific credit quality targets such as our High Yield BB & B strategy. Portfolios may include tactical allocations to European high yield, convertibles, loans, and special situations. These components of broader strategies are available as stand-alone portfolio offerings.

High Yield Corporate Strategies

Global High Yield Corporates

Primarily invests in non-investment grade corporate debt securities of global corporate issuers located in the U.S. and Europe, as well as in emerging markets.

U.S. High Yield Corporates

Primarily invests in non-investment grade U.S. dollar-denominated corporate bonds issued in the U.S. domestic market.

High Yield Opportunistic

Invests opportunistically in non-investment grade securities of corporate issuers, with an investment objective of achieving higher total return versus benchmark-aware strategies. The strategy is not constrained by or managed to outperform any particular benchmark.