May 06, 2025
Tracing our history to 1928, Wellington Management is one of the largest independent investment management firms in the world. We serve as a trusted adviser for institutions in more than 60 countries.
Europe: a good hunting ground for high yield?
Key points:
- With attractive yields and a low duration profile, high yield can present potentially compelling opportunities for investors.
- We believe Europe’s high-yield market is particularly attractive, given its ability to offer high yields but low duration.
- However, spreads remain tight, and the geopolitical and market backdrop still looks uncertain. Active investors may be able to exploit inefficiencies while managing risks.
With 2025 well underway, we believe high-yield fixed income remains an attractive asset class for investors. While greater volatility and uncertainty continue to characterise the new macro regime, it is also an investment landscape from which active high-yield investors can benefit, given the potential for increased dispersion across regions, sectors and issuers.
For us, the standout region for high-yield investors is Europe — a market that is significantly larger, more diverse and higher quality than it has been in the past — and one that we believe can offer attractive alpha opportunities for active investors.
Why Europe for high yield?
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