Global high yield set to repeat its strong rebound pattern

It has been an encouraging start to 2023 in terms of returns, engagement, and activity for high yield (HY).

A drawdown of -11.38%1 in 2022 has set the stage for better returns over the next 1-2 years in this strongly mean reverting asset class. The sharp repricing of government bond yields has taken the Global HY yield to nearly 8.75%2 which has historically proven good entry points for longer term investor.