What’s the outlook for US high-yield bonds?

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.

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