High-yield credit investing: it’s a marathon, not a sprint
In our view, investors can have a tendency to be too short-term focused when it comes to investing in the high-yield bond market — approaching the asset class as a tactical trade rather than a longer-term, structural allocation. In contrast, we view high-yield investing as a marathon rather than a sprint — success isn’t about who records the best time for the next 10 km of the race but about who completes the course and crosses the finish line first.
For us, that translates into seeking solid income and total returns from high-yield credit by focusing on the high-quality companies likely to outperform over the long term, drawing on the experience gained across economic and market cycles and being wary of the hype surrounding potentially bubble-inducing developments like generative AI. Here, we set out what we believe are vital components of this long-term approach.
