Discover the benefits of high yield bonds in your fixed income strategy, such as potentially higher returns and a typically low correlation with investment grade bonds. High yield bonds are one of our core expertise and we manage $8bn+ in high yield bonds for investors globally.
In High Yield assets managed in globally
Fixed Income team members globally
Our experience fixed income team is made up of 180 investment professionals across the globe.
Our capabilities allow us to seek attractive income from a broad range of higher yielding bonds from across the globe to help you meet your investment goals. This may include corporate high yield bonds or subordinated debt securities. Our approach is centred on the belief that fundamental research, both top-down and bottom-up, is the best way to determine future returns and we take a suitable amount of credit risk across different market environments.
Let us know your preferences to receive insights and ideas on the themes, strategies and products of most interest to you.
Global Fixed Income Strategy Monthly Report
In our regularly updated macroeconomic analysis we offer an outlook for interest rates and currencies – and look at which fixed income assets are favoured across a range of market environments.
The future of fixed income investing; takeaways from our webinar
As we enter the final quarter of the year, our experts look back at the ‘year of the bond market’ and share their thoughts on the outlook for Fixed Income assets going forward.
Monthly fixed income update
August was another positive month for fixed income markets, with Fed Chairman Powell largely confirming that US rates would be cut in September. Read our latest thoughts on how fixed income markets performed during the month and what we think you should be looking out for in the near term.
Yields remain attractive and may maintain positive relative value
Significant focus on the uncertainty of the US macroeconomic backdrop and its potential implications on the market remain top of mind for investment opportunities. Against this cautious outlook, we asked the experts from Invesco’s bank loan, direct lending and distressed credit teams to share their views as the third quarter of 2024 wraps up.
Impact investing: climate adaptation and transition in a changing world
If we are to live more sustainably by 2030, the Climate Policy Initiative estimates that US $4.3 trillion will be needed annually. Climate adaptation and transition projects are helping, but more finance is needed. Find out more.
High yield bonds have a higher credit risk than investment grade bonds because the issuers are considered to have a higher chance of defaulting, or not being able to meet their contracted obligations. For this reason, high yield bonds tend to offer higher yields, to compensate for the higher risk.
Credit risk is the risk that a debtor fails to meet a contracted obligation – either the payment of a coupon or the repayment of principal.
Bonds are rated according to their risk of default by independent credit rating agencies, such as Moody's, Standard & Poor's and Fitch. Bonds with credit ratings below BBB are generally considered to be high yield bonds. Bonds with lower ratings have higher risks associated with them that investors should consider.
Investment grade bonds are typically favoured when economic conditions are declining. However, when there is optimism regarding the economy, demand for high yield bonds usually increases. Amid stronger global growth, higher yielding bonds have generally outperformed lower yielding ones.
Historically, high yield bonds have been more volatile with higher default risk among underlying issuers versus investment grade bonds. The volatility of the high yield bond market is typically similar to the volatility of the stock market, unlike the investment grade bond market, which typically has much lower volatility.
Investments in high yield strategies can be made through actively managed mutual funds or exchange traded funds (ETFs). Invesco offers a broad range of actively managed fixed income funds and fixed income ETFs.
Fundamental research involves analysing data which is expected to impact the price or perceived value of a stock. Some stock fundamentals include the profitability of a business, the cash flow, return on assets, and the level of indebtedness of a company.
Full information on risks can be found in the sales documents.
Full information on risks can be found in the sales documents.
The value of investments and the income from them are subject to fluctuations. This may be partly due to changes in exchange rates. Investors may not receive the full amount invested when they redeem their shares.
Because a large portion of this fund is invested in less developed countries, investors should be prepared to accept a higher level of risk than would be the case with an ETF that only invests in developed countries.
The creditworthiness of the debt securities to which the Fund is exposed may decline, causing the Fund's value to fluctuate. There is no guarantee that debt issuers will repay the interest and principal on the redemption date. Risk is higher if the fund has exposure to high-yield debt securities.
Changes in interest rates will cause the value of the Fund to fluctuate.
This Fund may hold a significant amount of lower-rated debt instruments. This may result in large fluctuations in the ETF's value and, in certain circumstances, reduce its liquidity.
The Fund intends to invest in securities of issuers that better manage their ESG exposures relative to their peers. This may impact the Fund's exposure to certain issuers and may result in the Fund forgoing certain investment opportunities. The Fund's performance may differ from that of other funds and it may underperform other funds that do not rely on their ESG ratings when investing in securities of issuers.
Currency hedging between the base currency of the Fund and the currency of the Share Class may not completely eliminate the currency risk between these two currencies and may impact the performance of the Share Class.
During stressed market conditions, it may be difficult for the Fund to purchase or sell certain instruments. Therefore, the price obtained when selling such instruments may be lower than under normal market conditions.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. MSCI is a trademark and service mark of MSCI Inc. (together with its affiliates, “MSCI”), used under license. Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”), including Bloomberg Index Services Limited, the Index Administrator (“BISL”), or Bloomberg's licensors, including MSCI, own all proprietary rights in the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index. Neither Bloomberg nor MSCI is affiliated with Invesco and neither Bloomberg nor MSCI endorses, endorses, reviews or recommends the Invesco Global High Yield Corporate Bond ESG UCITS ETF. Neither Bloomberg nor MSCI guarantees the timeliness, accuracy or completeness of any data or information relating to the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index and neither has any liability to Invesco, investors in the Invesco Global High Yield Corporate Bond ESG UCITS ETF or shall not be liable in any way to any other third party in relation to the use or accuracy of the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index or the data contained therein.
The value of investments and the income from them are subject to fluctuations. This may be partly due to changes in exchange rates. Investors may not receive the full amount invested when they redeem their shares.
This marketing advertisement is for discussion purposes only and is aimed exclusively at professional investors in Austria, Germany and Switzerland.
Data as of July 31, 2024 unless otherwise stated.
This is marketing material and not investment advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require the impartiality of investment or investment strategy recommendations are therefore not applicable, nor is the ban on trading before their publication.
The views and opinions are based on current market conditions and are subject to change at any time.
Data is as at 30/06/2024 and sourced from Invesco unless otherwise stated.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
Views and opinions are based on current market conditions and are subject to change.
For the most up to date information on our ICVC funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the financial reports and the Prospectus, which are available using the contact details shown.
For more information on our investment trust, please refer to the relevant Key Information Document (KID), Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports. This information is available using the contact details shown.
EMEA 3748873
