With yields on bonds and loans near historical highs and the credit quality of the high yield market materially higher than in past cycles, investors may not need to take excessive risks to earn attractive returns in below-investment-grade markets today. Barings' Co-Head of Global High Yield, Scott Roth explains. Episode Segments: (02:00) – What’s gone right for high yield bonds and broadly syndicated loans in 2023 (04:56) – How high yield could fare if the Fed keeps hiking (07:58) – The outlook for high yield in a peak rate scenario (09:12) – The historical performance of high yield in recessionary periods (11:34) – How high yield stacks up vs. equities and why investors are making asset allocation changes (15:05) – High yield as a way to reduce volatility? (16:57) – Assessing today’s market technicals (19:22) – How the growth of private credit is impacting high yield bonds and broadly syndicated loans (23:56) – The biggest risks facing high yield today (26:50) – The impact of a China slowdown on global high yield (28:04) – The bull case on high yield bonds and broadly syndicated loans Certain statements about Barings LLC made by the participants herein may be deemed to be “testimonials” or “endorsements” as those terms are defined in rule 206(4)-1 under the Investment Advisers Act of 1940, as amended. Participants were not compensated in connection with their participation in this program, although in certain cases they are investors in Barings LLC sponsored vehicles. These investments subject such participants to potential conflicts of interest in making the statements herein. IMPORTANT INFORMATION Any forecasts in this podcast are based upon Barings’ opinion of the market at the date of preparation and are subject to change without notice, dependent upon many factors. Any prediction, projection or forecast is not necessarily indicative of the future or likely performance. Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Any examples set forth in this podcast are provided for illustrative purposes only and are not indicative of any future investment results or investments. The composition, size of, and risks associated with an investment may differ substantially from any examples set forth in this podcast. No representation is made that an investment will be profitable or will not incur losses. Barings is the brand name for the worldwide asset management and associated businesses of Barings LLC and its global affiliates. Barings Securities LLC, Barings (U.K.) Limited, Barings Global Advisers Limited, Barings Australia Pty Ltd, Barings Japan Limited, Barings Real Estate Advisers Europe Finance LLP, BREAE AIFM LLP, Baring Asset Management Limited, Baring International Investment Limited, Baring Fund Managers Limited, Baring International Fund Managers (Ireland) Limited, Baring Asset Management (Asia) Limited, Baring SICE (Taiwan) Limited, Baring Asset Management Switzerland Sarl, and Baring Asset Management Korea Limited each are affiliated financial service companies owned by Barings LLC (each, individually, an “Affiliate”). NO OFFER: The podcast is for informational purposes only and is not an offer or solicitation for the purchase or sale of any financial instrument or service in any jurisdiction. The material herein was prepared without any consideration of the investment objectives, financial situation or particular needs of anyone who may receive it. This podcast is not, and must not be treated as, investment advice, an investment recommendation, investment research, or a recommendation about the suitability or appropriateness of any security, commodity, investment, or particular investment strategy. Unless otherwise mentioned, the views contained in this podcast are those of Barings and are subject to change without notice