Multi-Asset Investing

Asset Allocation Insights

The Search for Yield

Timothy C. Murray, Capital Markets Strategist
Key Insights
  • In an uncertain environment with low interest rates, stock dividends are sparse and bond yields have plunged.
  • High yield bonds—which are supported by the rebound in oil prices and marked improvement in the quality of issuers—could offer compelling yields in our view.

Recently, equity markets have moved sideways, and until a widely distributed vaccine for the coronavirus is available, we believe that the U.S. faces a slow economic recovery. In this environment, investors seeking consistent yield in their portfolios may want to consider high yield bonds.

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Important Information

This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action.

The views contained herein are those of the authors as of August 2020 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.

This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types, advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision. 

Information and opinions presented, including any forward-looking statements, have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources’ accuracy or completeness. Actual outcomes may differ from any forward-looking statements made.

Past performance is not a reliable indicator of future performance. All investments are subject to market risk, including the possible loss of principal. Small-cap stocks have generally been more volatile in price than the large-cap stocks. All charts and tables are shown for illustrative purposes only.

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