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Introducing the Global High Income Bond Strategy

Michael Della Vedova, Co-Portfolio Manager, Global High Income Bond Fund

The scope of the investable universe that we’re focusing on is one that is truly global. For context, a decade ago, when people spoke of ‘high yield’, they were really thinking of US-based high yield. In the past decade, the investable universe has more than doubled and that hasn’t been driven by the US market. It’s largely been driven by the quadrupling in size of the European high yield market, and the significant increases we’ve seen in the emerging high yield corporate debt issuance as well. This is because companies are thinking more globally. Their needs for capital have increased on a global basis. They’re not just thinking of individual markets. And how they use their capital structure is increasing.

The investment objective of the strategy is to really seek to generate income for our clients. We do this by looking at bonds that deliver significant income through their coupon, but in addition to that, utilising our deep analytical resources, we’re looking for inefficiencies that can lead to capital appreciation as well.

We’re benchmark aware but we’re not reliant on the benchmark. Instead, we’re very reliant on our own in house bottom up research, and that can lead to us having significant underweights or overweights to that benchmark for the benefit of our clients. We’re looking to generate returns from a strategy of highest conviction ideas, where it’s more concentrated in names.  And finally, all investments are hedged back to US dollars. The idea there is so that we can really isolate the credit returns we are able to generate for our clients.

We believe that high yield is as relevant to asset allocators’ decision making now as it’s ever been. The income that the asset class is able to generate is increasingly important in a low interest rate environment.


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This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.  

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