Risks
Risks of high yield
Things to consider before investing
Key takeaways
Share via Email
1. Know your risks
Default risk (3-4% historical average)1, market risk, interest rate risk, liquidity risk, and credit risk all impact high yield investing.
2. Default risk management
While default risk averages 3-4%1 globally, active management and diversification can help mitigate this primary concern.
3. Liquidity considerations
High yield bonds may be less liquid than other bonds, with wider bid-ask spreads indicating higher liquidity risk, especially during volatile markets.
1Source ICE BofA. High Yield Market represented by the ICE BofA Global High Yield Index, as of 31 March 2025.
Read the complete story
Complete the learning and short quiz to earn CPD points.
New to high yield terms?
Get quick definitions of key concepts to help you navigate the high yield education hub with confidence.
Continue your learning
items
Introduction to high yield
Why global high yield?
Looking for income opportunities? This exciting asset class could be a compelling option
Introduction to high yield
High yield is all around us...
You could be surprised by some familiar names
High yield returns
Understanding high yield bond returns
The power of the compounding coupon
High yield returns
It's all in the name... High yield
Breaking down a high yield bond
Role of high yield
Comparing high yield to other asset classes
See how high yield stacks up from a risk and return, and volatility perspective
Role of high yield
Correlations
It behaves more like equities than traditional bonds
Role of high yield
More ups than downs
See how it's performed during times of market stress
Portfolio construction
Where does global high yield fit in your portfolio?
Risks
The importance of avoiding defaults
How active management can make a big difference
T. Rowe Price Global High Income Fund
Exciting companies.
Compelling incomes.
Current yield
7.08%*
*As of 30 September 2025. Past performance is not a guarantee or a reliable indicator of future results. The current yield of the fund reflects the market-weighted average of coupon divided by price per security.
Risks
Fixed income securities are subject to credit risk, liquidity risk, call risk, and interest-rate risk. As interest rates rise, bond prices generally fall. Investments in high yield bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.
Additional Disclosures
ICE BofA do not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit https://www.troweprice.com/en/au/market-data-disclosures for additional legal notices & disclaimers.
202508-4771180