Where to find value in the high yield market

While the entire ASX is worth around $2 trillion today, the global high yield bond market is worth around A$3 trillion and is a market that Australian investors can benefit from. 

Neuberger Berman offers one way to access it, and we spoke recently with one of their portfolio managers, Vivek Bommi about where he’s seeing opportunities today.

Vivek explains why he safely bypassed high profile names like WeWork and Uber as the companies never met their standards of generating good robust free cashflow. Vivek then goes on to provide a real-life case of a company they did buy, and subsequently sold. While other managers have spoken about this company from an equity perspective, it was fascinating to get an insight about how well it had played out from a high yield credit perspective as well.

Neuberger Berman’s Global Corporate Income Trust (ASX:NBI) was listed on the ASX in September 2018 and provides investors with exposure to the high yield bonds of large and liquid global companies.

For more information about NBI and how this investment solution can provide stable and consistent income, as well as diversification, please visit www.nb.com/nbi

Disclaimer

Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298, AFSL 240975), is the Responsible Entity for the NB Global Corporate Income Trust (“NBI”). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).

This video has been prepared by Neuberger Berman Australia Ltd (ACN 146 033 801) (“NB Australia”) to provide you with general information only. In preparing this publication, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this publication. Neither NB Australia, Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of NBI’s Product Disclosure Statement before making a decision about whether to invest in this product. The information contained in this publication is taken from publicly available sources that is subject to change without notice. EQT and NB Australia make no representation as to the reliability or accuracy of the publicly available information.