Higher default rate in European High Yield driven by a growing trend of aggressive liability management activity among over-levered issuers, increasing the risk of balance sheet restructuring events.

The sector has gone from being one of the riskiest in Europe to among the safest – an excellent example of the situations we look for, and that our deep research and bottom-up approach allows us to benefit from.

Three key themes are driving our investment strategy in 2024. We share the thinking behind the opportunities we have identified.