Fixed income

High Yield bonds

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.

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About our high yield capabilities

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. 

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    Fixed Income

    Global Fixed Income Strategy Monthly Report

    By Invesco

    We speak with IFI portfolio managers about the factors driving US investment grade and how they are navigating the current fixed income environment. Read online.

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FAQs

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'sStandard & 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, including investment trusts, 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.

  • Investment risks

    For complete information on risks, refer to the legal documents.

    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.

    Important information

    This marketing communication is exclusively for use by Qualified Clients/Sophisticated Investors in Israel. It is not intended for and should not be distributed to the public. Investors should read the legal documents prior to investing.

    Data as at 25 August 2025, unless otherwise stated.

    By accepting this material, you consent to communicate with us in English, unless you inform us otherwise.

    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.

    No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this document to the public.  This Fund has not been approved by the Israel Securities Authority (the ISA). The Fund shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1968, who in each case have provided written confirmation that they qualify as Sophisticated Investors, and that they are aware of the consequences of such designation and agree thereto and further that the Fund is being purchased for its own account and not for the purpose of re-sale or distribution, other than, in the case of an offeree which is an Sophisticated Investor, where such offeree is purchasing product for another party which is an Sophisticated Investor. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”).  Neither Invesco Ltd. nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder. This document does not constitute an offer to sell or solicitation of an offer to buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person to whom it is unlawful to make such offer or solicitation.

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