Real Asset Debt

High Yield Looks Relatively Attractive Going Into 2026

Chart

Jan 26, 2026

High starting yields have historically been a strong indicator of future return potential in high yield markets over the past 30+ years. As shown in the chart below, high yield has had positive performance in 25 out of the past 31 years. In our view, 6.7% is a relatively high starting yield, and may offer investors seeking total return an attractive entry point. 

High Yield Looks Relatively Attractive Going Into 2026

Source: ICE. Results reflect the total return of the ICE BofA US High Yield Index. Results cover the period of December 31, 1994 through November 30, 2025. YTD 2025 data as of November 30, 2025.  Calendar year 2009 not shown. During that year total return was 57.51% from the starting yield of 19.43%. Starting yield measures the yield to worst for the ICE BofA U.S. High Yield Index as of November 30, 2025. 

  

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Index Provider Disclaimer 

The quoted indexes within this publication are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. There may be material factors relevant to any such comparison such as differences in volatility and regulatory and legal restrictions between the indexes shown and any investment in a Brookfield strategy, composite or fund. Brookfield obtained all index data from third-party index sponsors and believes the data to be accurate; however, Brookfield makes no representation regarding its accuracy. Indexes are unmanaged and cannot be purchased directly by investors. 

  

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Definitions Of Terms 

Annualized Return is periodic returns rescaled to a period of one year. 

Correlation measures the extent of linear association of one fund or index to another. 

  

Index Definitions 

The ICE BofAML US High Yield Index tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. 

  

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