Episode 168: Quality High Yield Offers Performance Resilience and Diversification

In this episode of the InsuranceAUM.com podcast, Stewart Foley sits down with Paul Massaro, Head of Global High Yield Franchise at T. Rowe Price, to discuss the leveraged credit market and how the current economic landscape impacts high-yield bonds. Paul offers a deep dive into the structure and evolution of the $1.4 trillion high-yield bond market, emphasizing its growing quality and resilience. They discuss the surprising outperformance of leveraged credit in 2023, despite ongoing macroeconomic challenges, and how high-yield bonds offer unique diversification benefits to insurance portfolios.

Paul also shares insights into T. Rowe Price's approach to high-yield allocation within fixed income portfolios, discusses where he and his team are finding value, and highlights the importance of capitalizing on short windows of opportunity in volatile markets. This episode is essential for insurance investment professionals looking to better understand the high-yield space and how it can fit into diversified portfolios, especially in today’s uncertain economic environment.