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 The Insight by Oaktree Capital cover image

Conversations: The Goldilocks Market with Armen Panossian, Danielle Poli, and Wayne Dahl

The Insight by Oaktree Capital

NOTE

The Convexity of High Yield Bonds

High yield bonds offer greater convexity and potential duration in a multi-asset portfolio. They are currently of higher quality compared to leveraged loans, which are at their lowest quality. While leverage loans may have higher current yields, the expectation of higher defaults and losses should lead investors to consider the excess returns as compensation for potential losses.

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