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. The total face value of the global high yield market now exceeds US$4.8 trillion* with the U.S. high yield segment representing 33% of the total. This compares with a US$292 billion market with 94% U.S. market share at the beginning of 2000.
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.
*Bond Radar and JP Morgan. As of 31 March 2021.