Latest / UBS Trending / High yield has entered the fast lane
Transcript
- 0:00The market once had a large
- 0:02amount of lower quality, high yields insurers,
- 0:04but today the ride has been upgraded.
- 0:06BB-rated companies now represent over 60% of the index.
- 0:11Turning high yields into a better ride experience.
- 0:14Your journey is quicker too.
- 0:14Duration, or how long it takes on
- 0:17average to get your money back has shortened to three years.
- 0:20Along the way, you're picking up steady income on a 6.5%
- 0:24in coupons paid twice a year. While default risk,
- 0:27or the chance that an issuer fails to repay,
- 0:29is near 2%, well below prior peaks.
- 0:32Think of high yield as a smoother car service experience,
- 0:36not a taxi scramble
- 0:38on a rainy day, a more tap and go than wait and wonder.
- 0:42If you're seeking income with a more predictable
- 0:43route, high yield today is a better ride.
- 0:46Ask your UBS advisor for directions.