Global High Yield Credit

A dynamic approach to global high yield

Reasons to invest

Compelling yield

We pursue a high level of income by investing in below-investment-grade corporate bonds.

Global approach

By expanding the universe beyond the two largest high yield markets of the US and Europe, we create more opportunities.

Relative value

Focusing on security selection rather than issuer selection alone, we are able to exploit the differences in relative value among bonds, loans and derivatives.

Risk aware

A thorough risk management process provides the best opportunity to avoid negative credit events and to convert valuation anomalies into alpha.

ESG integration

The team utilises external and proprietary ESG data and research – along with Federated Hermes’ leading stewardship resources – to mitigate risk and discover new opportunities.

Strategy overview

Fraser Lundie

Investing worldwide, we exploit differences in relative value throughout issuers’
capital structures aiming to outperform through the cycle.

Fraser Lundie, CFA
- Head of Fixed Income - Public Markets

Why Global High Yield Credit?

Lower volatility credit can potentially offer superior risk-adjusted returns against equities. Although high economic growth is desirable, credit can thrive in a low-growth environment – given companies’ focus on balance sheet health – leading to excellent fundamentals and low default rates.

Investors continue to search for income. In the current environment, there are many expensive valuations and negative-yielding assets. Therefore, approaching credit in the right way is more important than ever. Through our global, relative value approach, we aim to achieve a high level of income.

The global high yield market can provide compelling diversification as part of a broader portfolio of assets, given its low correlation to equities.

How we invest

Top-down assessment
Bottom-up credit selection
ESG analysis

Investment Philosophy

We believe that global, relative-value investing throughout the capital structures of debt issuers can deliver strong returns through the cycle.

Investment process

Global Equity ESG - Infographic

Team

5888, 5972, 6046
Fraser Lundie

Fraser Lundie, CFA

Head of Fixed Income – Public Markets, Federated Hermes Limited

Nachu Chockalingam

Nachu Chockalingam, CFA

Senior Credit Portfolio Manager, Federated Hermes Limited

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Product Information

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Insights

Read our latest portfolio perspectives

Our Purpose

To deliver Sustainable Wealth Creation

Like all our investment capabilities, Federated Hermes Global High Yield Credit aims to deliver Sustainable Wealth Creation: the generation of wealth through investments that enrich investors, society and the environment over the long term.

Our business provides three equally powerful pathways to achieving this aim. Federated Hermes Global High Yield Credit features in the Active ESG route.

Active ESG on blue background

Responsible, active investing for long-term performance.

Federated Hermes Global High Yield Credit

Sustainable on green background

Thematic and values-based approaches for sustainable outcomes.

Impact on orange background

Mission-led investment strategies to create positive impact.