Capital IdeasTM

Investment insights from Capital Group

Key role for high yield in income-seeking portfolios

In the second of two videos, Shannon Ward outlines how high yield has evolved and what this asset class can bring to an overall portfolio.

This video is only available in English.  

Equities have outpaced cash after rate peaks

Past results are not a guarantee of future results

As at 30 September 2023. Returns reflect the average cumulative return in US$ terms over each of the first 12 months immediately following the last increase in the target US Federal Funds Rate (“last Fed hike”) over the prior four hiking cycles. The specific ending months for the periods included in the average calculations are: February 1995, May 2000, June 2006, and December 2018. Global equities are represented by the MSCI ACWI (with net dividends reinvested). Global Bonds are represented by the Bloomberg Global Aggregate Total Return index. Cash is represented by the Bloomberg US Treasury Bills 1-3 months total return index. Fed: US Federal Reserve. Sources: Capital Group, FactSet