The High Yield investment strategy seeks high current income and, when consistent with its primary objective, capital appreciation through investment in fixed-income securities rated below investment grade. The TIAA-CREF team believes the attractiveness of high-yield securities comes from income returns, rather than from short-term price movements.
The High Yield investment team employs a fundamental research approach that focuses on looking at individual companies' historical cash flows, particularly over a variety of different industries and credit cycles. The strategy’s credit exposure is carefully managed through a rigorous analysis of borrowers and their ongoing cash flow characteristics. To further help reduce risk, the TIAA-CREF team also seeks to primarily invest in established companies with predictable cash flows.
High Yield portfolios are subject to certain risks such as market and investment style risk. Fixed-income investments are subject to certain risks such as interest rate, inflation, and credit risks. High-yield fixed-income securities, also known as “junk bonds,” are considered speculative, involve greater risk for default and tend to be more volatile than investment-grade fixed-income securities.
This material is provided for the informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.