Building Portfolio Resiliency: 10 Reasons to Incorporate High Yield Now
We believe it’s an opportune time to add high yield bonds to your portfolios as a diversifier. Here are 10 reasons why.
Today’s environment of inflation, rising rates, hawkish central banks, and heightened market volatility have left many investors wary of investment-grade bonds, which tend to have relatively low yields and are sensitive to fluctuations in interest rates.
High yield bonds, however, appear well positioned to weather a recession and tend to be more resilient in a rising rate environment. And, the high yield bond market is in much better health than it was during previous downturns, making this an opportune time to consider adding the asset class to your portfolios as a diversifier.
All opinions expressed in video and thought leadership content constitute Barrow Hanley’s opinion at the time of issuance. The information provided is for informational purposes only and is not intended to be an offer, solicitation, or recommendation with respect to the purchase or sale of any security, nor a recommendation of services supplied by any money management organization. Past performance is not indicative of future results.
Founded in 1979, Barrow Hanley is a diversified investment management firm offering value-focused investment strategies spanning global equities and fixed income. Recognized as one of the few remaining firms dedicated exclusively to value investing, Barrow Hanley enjoys a boutique culture with a singular focus to assist clients in meeting their investment objectives. Barrow Hanley stewards the capital of corporate, public, multi-employer pension plans, mutual funds, endowments and foundations, and sovereign wealth funds across North America, Europe, Asia, Australia and Africa.
