Aim higher with
high yield

Amid rocky markets, investors are seeking a guiding hand for their fixed income portfolios.

Aim higher with
high yield

Amid rocky markets, investors are seeking a guiding hand for their fixed income portfolios.

Converting risk into reward

Mixed economic data and central banks raising interest rates can create challenging markets. High yield bonds offer a high yield to help mitigate the risk of default and have historically delivered attractive total returns over the long term. Through a selective approach we believe it is possible to identify those companies better able to meet their repayments and capture returns.

Past performance does not predict future returns.

The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

Total return versus volatility, 2000 to 2020

Source: Refinitiv Datastream, total return indices in US dollars, 31 December 2001 to 31 December 2021. Volatility is annualised standard deviation using monthly data returns.

Total return versus volatility, 2000 to 2020

Source: Refinitiv Datastream, total return indices in US dollars, 31 December 2001 to 31 December 2021. Volatility is annualised standard deviation using monthly data returns.

A role for high yield

For investors prepared to accept some risk we believe that through a selective approach high yield bonds can play a valuable role within a diversified portfolio by offering:

Income potential

High yield bonds offer an attractive source of income with yields often multiples of other fixed income assets.

last 10 years Global High Yield has averaged
RENDIMENTI DELLE
OBBLIGAZIONI
GOVERNATIVE
GLOBALI
I RENDIMENTI DELLE OBBLIGAZIONI CORPORATE INVESTMENT GRADE GLOBALI
last 10 years Global High Yield has averaged
YIELD ON GLOBAL
GOVERNMENT BONDS
YIELD ON GLOBAL INVESTMENT GRADE CORPORATE BONDS

Diversification

High yield bonds typically have a much lower correlation with government bonds, making them a useful diversifier within a fixed income portfolio.

Correlation of Global Government Bonds over last 20 years
CON LE OBBLIGAZIONI  
 HIGH YIELD GLOBALI
CON LE OBBLIGAZIONI CORPORATE  
 INVESTMENT GRADE 
  GLOBALI
Correlation of Global Government Bonds over last 20 years
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CCAT3453_HY_CampaignImages-3.png

Yields may vary and are not guaranteed.

Low duration

High yield bonds have relatively low duration (interest rate sensitivity), which can help cushion against inflation concerns.

Source for average yield and duration: Bloomberg, data at 31 December 2021, ICE BofA bond indices, effective yield, effective duration; source for correlation: Refinitiv Datastream, same indices, correlation of monthly total returns, USD, over 20 years to 31 December 2021.

Past performance does not predict future returns.

Correlation of Global Government Bonds over last 20 years
Correlation of Global Government Bonds over last 20 years
Correlation of Global Government Bonds over last 20 years
Correlation of Global Government Bonds over last 20 years
Correlation of Global Government Bonds over last 20 years
years
GLOBAL HIGH
YIELD BONDS
Correlation of Global Government Bonds over last 20 years
years
GLOBAL INVESTMENT
GRADE CORPORATE
BONDS
Correlation of Global Government Bonds over last 20 years
years
GLOBAL
GOVERNMENT
BONDS
Correlation of Global Government Bonds over last 20 years
years
GLOBAL HIGH
YIELD BONDS
Correlation of Global Government Bonds over last 20 years
years
GLOBAL INVESTMENT
GRADE CORPORATE
BONDS
Correlation of Global Government Bonds over last 20 years
years
GLOBAL
GOVERNMENT
BONDS
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The case for high yield bonds

Interested in knowing more about high yield? A deeper exploration of the asset class can be found here.

Why Janus Henderson for high yield?

We have a distinct approach to managing high yield bonds:

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Repeatable, active management

that blends higher return opportunities with core stable income, adjusting the portfolio’s sensitivity to market and security risks according to the economic and credit cycle.

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Research driven team with co-ownership of risk

between analysts and portfolio managers to maximise idea generation; analysts cover issuers across the full credit spectrum (both HY and IG) and capital structure and are ESG integrated.

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Globally aligned team

working from both the UK and the US ensures an unbiased approach to regional allocation and helps identify opportunities regardless of issuer domicile.

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Robust risk management

focused on taking the right amount of risk throughout the cycle, together with a unique semi-mechanical stop-loss process.

Explore our funds

*For investors seeking the potential for high overall yield and capital growth from investing primarily in European high yield corporate bonds. In accordance with the Sustainable Finance Disclosure Regulation, the Fund is classified as Article 8 and promotes, among other characteristics, environmental and social characteristics.

L’attention des investisseurs est attirée sur le fait que ces fonds présentent, au regard des attentes de l’Autorité des marchés financiers, une communication disproportionnée sur la prise en compte des critères extra-financiers dans leur gestion.

Meet the managers

Our high yield portfolio managers located in London and Denver form part of our globally-integrated corporate credit team.

Tom_Ross

Tom Ross, CFA
Portfolio Manager

  • Industry since 2002
  • Joined firm in 2002
  • Based in London
Seth_Meyer

Seth Meyer, CFA
Portfolio Manager

  • Industry since 1998
  • Joined firm in 2004
  • Based in Denver
Tim_Winstone

Tim Winstone, CFA
Portfolio Manager

  • Industry since 2003
  • Joined firm in 2015
  • Based in London
Brent_Olson

Brent Olson
Portfolio Manager | Credit Analyst

  • Industry since 1997
  • Joined firm in 2017
  • Based in Denver

ENGAGE WITH US

Access the contact details and our sales representatives here.

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PURSUE FIXED INCOME

In uncertain times, fixed income can provide stability. We seek to help you overcome uncertainty with flexible solutions designed to strengthen the core of your portfolio.