Global High Yield Capabilities
Barings Global Senior Secured Bond Fund*
*The Barings Global Senior Secured Bond Fund principally invests in sub-investment grade and/or unrated debt securities. The Fund’s investment in senior secured debt securities does not guarantee repayment of the principal of investments by the investors
A Flourishing Income Opportunity
THINK DIFFERENTLY ABOUT HIGH YIELD
Overall MORNINGSTAR RATINGTM1
1. Overall Morningstar Rating as of December 31, 2023 (EAA Fund Senior Secured Bond Investments). For the Tranche G USD Dist Monthly share only, other share tranches may have different performance characteristics.
Higher Recovery Rates
Given their seniority in the capital structure, senior secured bonds offer greater potential for capital preservation relative to junior debt and equity.
Source: Moody’s global average corporate debt recovery rates, please note that the above data refers to North American non-financial companies. As of March 2023.
Prices at Current Levels Have Historically Led to Strong 12-month Forward Returns
With high yield bond prices currently trading at a discounted level of around 8%, there is the potential for capital appreciation, as well as the regular coupon income that is on offer from high yield bonds.
Source: ICE BofA BB-B Global High Yield Secured Bond Index (HW4S). As of 31 December 2023. The data is from 29 January 2010 to 31 December 2023.
Manageable Debt Maturities with Select Pull-to-Par Opportunities
Performing companies will typically refinance bonds at least 12-18 months ahead of final maturity, and given the discounted nature of the high yield bond market today, that can present select compelling pull-to-par opportunities.
Sources: ICE BofA BB-B Global High Yield Secured Bond Index (HW4S). As of 31 December 2023.
Note: Effective June 30, 2022, the ICE Fixed Income Index reflects transaction costs. As a result, existing index level total return, price return and excess return fields have been adjusted to reflect the new methodology. All return information prior to June 30, 2022 has not been adjusted.