Invesco High Yield Fund Q4 2025 Commentary

Invesco US3.32K FollowersFollow5ShareSavePlay(8min)CommentsSummaryThird quarter GDP and corporate profits beat expectations, leading the high-yield segment to return 1.31% in the fourth quarter.The US Federal Reserve has cut the federal funds rate by a total of 1.75% since September 2024.The fund is underweight credit risk but has a longer duration than its benchmark, reflecting our constructive view of market risk.We maintain an underweight in the cyclicals and consumer discretionary sectors because we believe these areas are most vulnerable to a slowdown in consumer spending.There has been strong demand for higher quality high-yield securities and less demand for those rated CCC. wing-wing/iStock via Getty Images Key takeaways 1 Strong economic data buoyed high-yield Credit securities, US and non-US equities performed well in the fourth quarter of 2025. Third quarter GDP and corporate profits beat expectations, leading the high-yield segment – as represented by the BloombergThis article was written byInvesco US3.32K FollowersFollowInvesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a recommendation of the suitability of any investment strategy for a particular investor. Invesco does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state tax laws are complex and constantly changing. Investors should always consult their own legal or tax professional for information concerning their individual situation. The opinions expressed are those of the authors, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE All data provided by Invesco unless otherwise noted. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail products and collective trust funds. Invesco Advisers, Inc. and other affiliated investment advisers mentioned provide investment advisory services and do not sell securities.

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