High Yield Bonds Go Global

High yield credit can offer investors diversification from corporate debt - and an increasingly international exposure

Hermes 12 September, 2013 | 11:18AM

This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Fraser Lundie, co-head and senior portfolio manager at Hermes Credit explains what high-yield bonds can offer investors

The horizon continues to broaden for high-yield credit investors.

The growth of their market beyond the US accelerated as more European companies tap bond markets for debt as banks continue to curb lending following the 2008 financial crisis. Issuance from global, commodities-linked businesses in emerging markets has also reduced the dominance of US issuers in global high-yield debt benchmarks.

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About Author

Hermes  Hermes is a multi-asset fund manager offering global institutional and pension fund clients access to a broad range of specialist, high conviction investment teams.

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