Fixed income High yield bonds

Explore how high yield bonds can enhance your fixed income strategy with the potential for stronger returns and low correlation to investment grade bonds.
Wing of plane in the air - fixed income high yield

Why partner with us Disciplined approach to higher-yielding bonds

Our team seeks attractive income from a global mix of higher-yielding bonds - including corporate high yield and subordinated debt - guided by rigorous top-down and bottom-up research. Our disciplined approach balances credit risk across market environments to support your goals.

Disciplined credit risk

This approach helps investors navigate volatility while staying focused on long-term returns through a structured and research-driven process.

Global high yield expertise

Our scale and specialization allow us to indentify income opportunities across diverse markets and credit structures.

Diversified income potential

This diversification can improve portfolio resilience and return potential, especially in shifting interest rate environments.

$3B+ In assets managed

Investors across the globe trust us to manage their high yield assets.1

30+ yrs Experience

We have over a quarter century of experience managing high yield assets.1

180+ Professionals

Our experienced Fixed Income team is located across the globe.1

Frequently asked questions

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.

Yield is defined as the income return provided by the bond, which is the interest or dividends received, usually expressed annually as a percentage of the price of the bond.

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, including investment trusts, or exchange traded funds (ETFs). Invesco offers a broad range of actively managed fixed income funds and fixed income ETFs.

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  • Footnotes

    1 As of 30 June 2025. The assets managed number reflects the assets managed by Invesco Fixed Income Europe only.

     

    Investment risks

    The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

    Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date.

     

    Important information

    All information is provided as at 30 June 2025, 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 information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German, Spanish, Italian), and the financial reports, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.lu. The management company may terminate marketing arrangements. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor.

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