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. The team benefits 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 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.
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[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
BNP PARIBAS ASSET MANAGEMENT Singapore Limited, “the investment management company”, is a company incorporated in Singapore with its registered office at 20 Collyer Quay, #01-01 Collyer Quay, Singapore 049319, Company Registration No. 199308471D.
This material is issued and has been prepared by the investment management company. This advertisement has not been reviewed by the Monetary Authority of Singapore. It contains opinions and statistical data that are considered lawful and correct on the day of their publication according to the economic and financial environment at the time.
This document is produced for information purposes 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.
This document does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors should consult their own professional advisors in respect of legal, accounting, domicile and tax advice prior to investing in the fund in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Investors considering subscribing for the fund should read carefully the most recent prospectus, offering document or other information material and consult the fund’s most recent financial reports before investing, as available from the investment management company or its authorized distributors. Given the economic and market risks, there can be no assurance that the fund will achieve its investment objectives. Investments in the fund are not deposits or other obligations of, or guaranteed, or insured by the investment management company or its authorized distributors or their affiliates and are subject to investment risks, including the possible loss of principal amount invested. Returns may be affected by, amongst other things, investment strategies or objectives of the fund and material market and economic conditions, including interest rates, market terms and general market conditions. Past performance of the fund or the managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the fund or the manager. The value of shares in the fund, and the income accruing to the shares (if any), may fall as well as rise and investors may not get back the full amount invested. Funds which are invested in emerging markets, smaller companies and derivative instruments may also involve a higher degree of risk and are usually more sensitive to price movements.
Views and opinions included in this document constitute the judgment of the investment management company and its affiliates at the time specified and may be subject to change without notice.
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