Worth the risk ?

There’s a straightforward reason why we remain cautious about the U.S. high-yield space, even though the U.S. economy continues to deliver positive surprises. In today’s environment, the compensation for taking on higher credit risk by lending to riskier borrowers is no longer adequate. Credit spreads have fallen to record lows, even as bankruptcies have surged to a 14-year high in 2024, with 694 large companies filing for bankruptcy in 2024. The majority of defaults have occurred in the consumer discretionary, industrial, and healthcare sectors. For investors willing to take on credit risk, we strongly recommend considering specialized funds such as our SSF Global Bond Euro Fund, where seasoned investment experts with a proven track record carefully select the right issuers to capture additional yield.