The Case for a Strategic Allocation to High Yield Bonds

T. Rowe Price
Hybrid characteristics provide attractive risk/reward profile.

Key Insights

  • High yield bonds, in our view, have a key role as a strategic long‑term investment and a mainstay allocation in a well-diversified portfolio.
  • High yield bonds have an attractive risk/reward profile, having historically provided equity‑like returns with less volatility than stocks.
  • Investors have been able to recognize much of high yield’s value by maintaining a long‑term allocation and taking advantage of the regular coupon payments.

High yield (HY) bonds, in our view, have a key role as a strategic long‑term investment and a mainstay allocation in a well‑diversified portfolio. Historically, high yield bonds have provided equity‑like returns with less volatility. Investors have been able to recognize much of high yield’s value over time by maintaining a long‑term allocation and taking advantage of the potential compounding effect of regular coupon payments.

To continue reading this article, please login below or register today.
T. Rowe Price
T. Rowe Price

T. Rowe Price is a global asset management firm with broad investment capabilities across Equity, Fixed Income, Multi-Asset and Alternative Strategies, highly committed to excellence in service and putting client interests first. We understand that insurers have many unique considerations impacting portfolio design, and we are proud to work with many of the largest insurers in the world delivering diverse and custom solutions designed to meet those needs. Our dedicated insurance relationship managers act as an extension of your team and serve as a conduit to the T. Rowe Price organization while proactively bringing the firm’s vast resources to bear. We offer a consultative, problem-solving approach and the ability to implement solutions based on specific client objectives, constraints, and risk tolerance.

Ben Riley, Brian Rapino
Senior Relationship Managers, Insurance
benjamin.riley@troweprice.com
LinkedIn
410-345-2223

brian.rapino@troweprice.com
LinkedIn
646-327-7050

www.troweprice.com/insurance
100 E Pratt Street
Baltimore, MD 21202

View the contributor page

Related Articles

Register for Insurance AUM Journal

Register today to confirm your status as an institutional investor and gain access to the latest thought leadership in the industry.

  • Thought leadership delivered to your inbox
  • Confirm your status as an Institutional Investor
  • Complete CFA Continuous Professional Development requirements

By clicking submit you confirm that you qualify as an institutional investor and you consent to allow Insurance AUM to store and process the personal information submitted above.

Lost password