Executive Summary

• • • • • Our US High Yield team has compiled a comprehensive analysis of the current high yield market landscape across rating categories. This report offers a structured framework for evaluating credit opportunities in an environment where careful credit selection has become increasingly important.
        • The high yield market has demonstrated robust performance in 2025, with spreads recently tightening and year-to-date returns showing strength. Notably, returns across rating cohorts remain tightly clustered, with minimal performance differentiation despite varying credit quality. Excluding distressed issuers, HY spreads stand at historically tight levels in our dataset extending back to 1997.
        • This report presents a selection of credits across the rating spectrum, featuring companies from various sectors including cruise lines, metals & mining, packaging, automotive, pharmaceuticals, technology, media, and energy. For each name, we provide context on business fundamentals, capital structure considerations, and relative value positioning within their respective sectors.
        • Our analysis emphasizes companies with specific fundamental catalysts, including potential rating changes, M&A activity, and deleveraging through asset sales or spin-offs. The concentrated nature of current valuations, particularly on a spread basis, underscores the importance of fundamental credit analysis in the current environment.
        • For detailed metrics, company-specific catalysts, or to discuss particular sectors, please contact the respective analyst teams referenced throughout the report. Complete research materials, including recent publications on featured companies, are available through our standard client channels.