Growth forecasts for 2026 are generally being revised up for US companies as the benefits of deregulation and fiscal measures in the One Big Beautiful Bill start coming through, underpinning a still resilient setup for the high-yield fixed income market. Accordingly, default rates should remain in a manageable 1-3% range – well below long-term averages.
Watch our video with Jack Stephenson, US Fixed Income Investment Specialist, as he paints a supportive backdrop for the US high-yield bond market. “Another coupon-like, or coupon-plus, return for US high-yield seems perfectly feasible in 2026,” he concludes.