Hi, I’m Jennifer Poon from the T. Rowe Price Fixed Income team, and today I’m here to talk about the high yield universe. 

You might be surprised that some of the world’s most recognisable brands have issued high yield bonds. Companies like Hilton, Air Canada, KFC, are all part of this diverse market. 

High yield isn’t a permanent label. Companies that get upgraded to investment grade – are known as rising stars. This includes: Uber, Netflix and Royal Caribbean.

Royal Caribbean is a good example because it was downgraded from investment grade into high yield in 2020 and then got upgraded again in 2025. Companies that are downgraded are known as fallen angels. 

The high yield universe does evolve over time as companies move up and down the credit spectrum. Credit ratings are a spectrum of risk. At the top, you have investment grade bonds from companies with very strong balance sheets and stable earnings, which are viewed as lower risk. 

Further down the spectrum are non-investment grade or high yield bonds, where companies might have more leverage or operate in more cyclical industries, so they are considered higher risk. 

But it’s not black and white – and a large part of the market sits at the higher-quality end within high yield. 

So hopefully this has helped make the high yield market a little clearer and easier to understand.

For more information on how global high yield can work for you, be sure to consult your financial adviser.