STRATEGIES

High Yield

Philosophy

BlackRock manages global, active high-yield strategies that seek to identify relative value opportunities to create diversified portfolios of non-investment-grade credit securities.

The high-yield team combines a bottom-up credit philosophy with top-down portfolio allocation and risk philosophies to maximize return per unit of risk. Portfolio managers look at the entire capital structure across all market sectors to identify the most attractive opportunities.

The priorities of the high-yield team are to seek to deliver:

  • An attractive income source throughout economic and interest rate cycles.
  • A deep emphasis on covenant and legal review to mitigate against downside risk.
  • Relative value across the capital structure.

Investors with the following objectives may find an allocation to high yield worth considering:

  • Seeking to generate above-average income over a longterm investment horizon.
  • Seeking to gain exposure to an asset class that may be able to deliver equity-like returns with less volatility than equities.
  • Seeking to diversify a portfolio of Treasuries and investment-grade bonds.

Leadership

James Keenan
Global Head of Fundamental Credit
David Delbos
Co-Head of US High Yield
Mitchell Garfin
Managing Director, Co-Head of US High Yield