In the current year, the signs are good for another above-average performance in the secured high yield segment. "We assume that the performance of secured high yield will be driven primarily by the high coupon yield. This is currently around 0.5 per cent per month," says Senior Portfolio Manager Stefan Chappot. Together with the price increases, "Secured High Yield is currently yielding 7.5 per cent," Chappot continues. By comparison, the long-term average is around 5.7 per cent.
Secured high-yield bonds already achieved a return of almost 15 per cent in the 2023 investment year. This segment even outperformed unsecured high-yield bonds. "This performance is mainly due to the decline in credit risk premiums in the second half of the year," explains Chappot.