2026 Market View: High Yield

Dec 04, 2025

Tim van der Weyden, portfolio manager, summarises the market in 2025 for the asset class, and gives his thoughts for 2026.

  • After years of almost double-digit returns in European High Yield, 2025 was a return to a more normalised environment, supported by low defaults and strong issuance.
  • The now significantly internally generated income, plus strong inflows, ensured that dips were bought and volatility was short-lived, setting the stage for a positive 2026.
  • Private equity activity in infrastructure and corporate divestitures, alongside AI-driven capex demands, is primed to sustain funding for High Yield.
  • With macro improvements anticipated and tailwinds from both micro and macro trends, mid-to-high single-digit returns are projected for 2026.


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