US high yield bonds
A flexible US high yield solution that seeks to generate higher total returns than the market through a concentrated, nimble portfolio.
The opportunity
High yield bonds typically offer investors higher income to compensate for lower credit ratings.
The US is the largest and most liquid high yield market, with broad diversification across sectors, maturities and ratings.
Within the US high yield market, the average quality rating has improved over the past decade1. Structural changes such as this have led to narrower spreads, reflecting the lower default levels we are experiencing and, we believe, an increased confidence in the market among investors.
With the potential for equity-like returns but lower volatility, high yield bonds may be seen as an alternative to equities, especially in these unpredictable markets.
Strategy highlights
Access US high yield expertise
Based out of the US, our experienced US High Yield investment team employs a tried and tested investment process that is designed for this asset class. Through our expertise and capabilities, clients have access to a wide range of high yield solutions.
Seek stronger returns than the market
The strategy aims to deliver equity-like returns with volatility in line to slightly higher than the broad US high yield market. To achieve this, we focus on capturing yield advantage without giving away returns through defaults or significant losses.
Invest differently
We look to take meaningful positions that reflect idiosyncratic credit opportunities. Our high-conviction approach means the strategy’s composition is different to that of funds tracking the US high yield index.
Team and expertise
Our US high yield bonds strategy sits within the US High Yield investment team and is managed by Michael Graham, who has 20 years’ industry experience. He is supported by Robert Houle, senior portfolio manager and David Shapiro, portfolio manager/analyst.
Michael and the team benefit from the support of a dedicated US High Yield Trading team, as well as a broad range of firmwide resources in research and execution.
The US High Yield investment team manage over US$13.5 billion assets2, which supports this strategy by enabling best execution and access to trading opportunities not available to smaller managers.
Investment risks
No assurance can be given that our investment strategies will be successful. Investors can lose some or all of their capital invested. Our strategies are subject to risks including but not limited to: equity; emerging markets; global investments; investments in small and micro capitalisation universe; investments in specific sectors or asset classes specific risks, liquidity risk, credit risk, counterparty risk, legal risk, valuation risk, operational risk and risks related to the underlying assets.
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and offering document.
Visit our fund centre
Learn more about our US high yield bonds strategy
[1] Source: BofA HY Chartbook. US HY market represented by ICE BofA US High Yield Index, as of 30 November. FactSet, ICE BofA ratings methodology.
[2] BNP Paribas Asset Management as of 30 November 2025.
Important information
This material is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Asia Limited with its registered office at Suite 1701, 17/F, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong. This material has not been reviewed by the Hong Kong Securities and Futures Commission. It is produced for information purposes only and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
- investment advice.
Investors considering subscribing for the financial instruments should read the most recent prospectus, offering document or other information for further details including the risk factors available from your local BNPP AM correspondents, if any, or from the entities marketing the Financial Instrument(s). Investors should consult their own professional advisors in respect of investment, legal, accounting, domicile and tax advice prior to investing in the funds in order to make an independent determination of the suitability of the consequences of an investment. Investments involve risks. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. Past performance is not a guide to future performance.
Some of the services listed on this Website may not be available for offer to retail investors.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Fixed income sub-funds may be exposed to other risks defined below:
CAPITAL LOSS RISK: The value of the investments in Financial Instrument(s) and the returns generated by the described funds may go down as well as up. Investors may not get back the amount they originally invested.
INTEREST RATE RISK: The value of an investment may be affected by interest rate fluctuations. Interest rates may be influenced by several elements or events, such as monetary policy, the discount rate, inflation, etc.
CREDIT RISK: This is the risk that may derive from the rating downgrade of a bond issuer to which the sub-funds are exposed, which may therefore cause the value of the investments to go down. Sub-funds investing in high-yield bonds present a higher than average risk due to the greater fluctuation of their currency or the quality of the issuer.
COUNTERPARTY RISK: This risk relates to the quality or the default of the counterparty with which the Management Company negotiates, in particular involving payment for/delivery of financial instruments and the signing of agreements involving forward financial instruments. This risk is associated with the ability of the counterparty to fulfil its commitments (for example: payment, delivery and reimbursement). This risk also relates to efficient portfolio management techniques and instruments. If counterparty does not live up to its contractual obligations, it may affect investor returns.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INVESTMENT RISK: The lack of common or harmonized definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, the Sub-Fund’s performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
This is not an exhaustive list of risks. For a full description of risks associated with each fund, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.