SJNK - Chart Of The Moment: Behind U.S. High Yield's Impressive Resilience

2024-07-24 13:15:00 ET

Summary

• A look at performance shows high yield often has a resilience and risk-adjusted return potential all its own.
• In the opening weeks of the third quarter of 2024, the Russell 2000 has made up more than half of its underperformance compared to the High Yield Index.
• We believe the reality, as we saw in this period, is that high yield is especially resilient, often generating compelling risk-adjusted returns compared to stocks or core fixed income over time.

By Bill Zox, CFA

Some compare high-yield risk to equities, while others liken it to core fixed income. A look at performance shows high yield often has a resilience and risk-adjusted return potential all its own....

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