Morgan Stanley Investment Management
July 10, 2026
High Yield Market Monitor
Quarterly UpdateRates CreditCommunication ServicesEnergy
The Q2 2026 High Yield Market Monitor provides an in-depth review of performance, technical factors, and fundamental metrics for US and European high yield bond markets.
Key Takeaways
- 1.US and European high yield markets showed positive returns in Q2 2026, with US high yield yields at 7.15% and European high yield at 5.54% (EUR-hedged).
- 2.The high yield asset class continues to demonstrate lower correlation to core bonds and attractive risk-adjusted returns (Sharpe Ratio).
Table of Contents
- Asset Class Review
- Market Update
- Fundamentals & Valuations
- Case for High Yield
- About MSIM
- Additional Information
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Authors
High Yield Investment Team
Securities
ICE BofA US High Yield IndexICE BofA Euro High Yield Index
Themes
Risk-adjusted performanceYield potential in high yield credit
Regions
EuropeUnited States