T. Rowe Price on the Renewed Opportunity in High Yield

The renewed opportunity set in fixed income is enabling investors to achieve attractive returns while taking on less risk.

High yield is particularly well-positioned. This will provide an attractive total return opportunity that can help protect investors against rate increases or spread events. Below-average prices combined with above-average yields and reasonable credit fundamentals create a compelling opportunity in high yield.

“From our angle, we’ve seen a lot of renewed interest in high yield recently from investors looking to de-risk from equities. They’re view the income return on bonds as providing a more stable and reliable source of return relative to equities,” Ashley Wiersma, portfolio specialist at T. Rowe Price, said during VettaFi’s Income Strategy Symposium on October 27.

Ashley Wiersma, Portfolio Specialist, T. Rowe Price