ING Investment Management has announced its global high yield fund has surpassed €5 billion in assets under management.
ING IM said the outlook for high yield is cautiously optimistic, as it prefers spread over rates, given that credit fundamentals remain healthy and default rates are low. In addition, sensitivity to interest rate changes is low within high yield. ING IM head of global high yield, Tim Dowling, said: “Our overall return expectation for the asset class is a return of around 5% which is near the current coupon yield levels. There is still some room for further spread tightening which is dampening the impact of rising interest rates. In contrast to emerging markets debt, the flows to the asset class remain supportive, particularly within the European space.”