Asset Class Focus: US High Yield

April 20, 2026

Key Takeaway

Market reaction to AI adoption, private credit fears and conflict in the Middle East has created opportunities to reposition; the strategy was active in Healthcare, Financials and Energy during the quarter

The ICE BofA US High Yield Constrained Index produced a total return of -0.55% in Q1 2026, its worst quarter since Q3 2022.1 Yields increased by 81 bps to 7.44% with spreads 47 bps wider. CCCs (-2.21%) materially underperformed B (-0.38%) and BB (-0.38%). We were active in the quarter, net adding risk at the strategy level seeking to take advantage of more attractive yields, divergent sector performance and additional name opportunities. 

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(1) Data sourced from ICE Data Services. 1 April 2026.

Unless otherwise stated, the information presented has been prepared from market observations and other sources believed in good faith to be reliable. Information and opinions expressed by PPM are current as of the date indicated and are subject to change without notice. Forward-looking statements are subject to uncertainties that could cause actual developments and results to differ materially from the expectations expressed.

Past performance is no guarantee of future results. Investments involve varying degrees of risk and may lose value.

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