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Story perspectives

High-Yield Bonds Thrive Amid Low Default Rates

7/8/2025

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Story summary
  • American companies' debt defaults are low, increasing demand for high-yield bonds.
  • The Western Asset Inflation-Linked Opportunities & Income Fund (WIW) provides an attractive 8.6% yield with diverse inflation-linked bonds.
  • The Corporate Bond Market Distress Index shows minimal risk in investment-grade and high-yield bonds.
  • High-yield bonds have outperformed the S&P 500 in 2025 amid market fluctuations.