In fixed income, as in golf, precision often matters more than power. According to Jack Holmes, Fixed Income Manager at Artemis, that comparison sums up the difference between the US and European high-yield markets.
Referencing Europe's narrow defeat of the US in the Ryder Cup, Holmes suggests that Europe also has the edge over the US when it comes to active high-yield bond investors.
"The US market might be bigger," Holmes says, "but the European one rewards those who pay closer attention." With fewer structural investors and a more varied mix of issuers, Europe's smaller market can offer greater pricing inefficiencies — opportunities for those willing to do the detailed work.
He adds that flexibility is key: a purely euro-denominated approach can limit diversification, while balancing euro and dollar exposure helps capture yield differences without adding currency risk. In an asset class where selectivity counts, Holmes argues, Europe's complexity can be its greatest strength.
Read the full article on the Investment Week Fixed Income Portal to learn why it's not just golf where Europe may have the edge over the US
