As of November 30, 2025, the European high-yield segment is up 4.9%, on track for a third consecutive year of gains after returns of 8.5% in 2024 and 12.1% in 2023.

Since its inception on December 31, 2006, the European High Yield Index excluding financials (HEAE Index) has delivered a cumulative return of 159% — almost matching the 166% gain of the European equity market (Stoxx Europe 600 NR) over the same period. Including financials (HE00 Index), the European high yield’s cumulative performance rises to 178%.

Our analysis

This comparison shows that over the long term (nearly 20 years in the example above), the performance of the European high-yield segment can be broadly equivalent to that of the European equity markets, posting an average annual increase of just over 5%.

Another advantage of the high-yield segment is its lower volatility compared to the equity markets, both on a daily and on a monthly or annual basis. In times of market stress, its declines also tend to be more moderate. The year 2025 offers a good example: between February 28 and April 15, the Stoxx Europe 600 NR dropped 8.3%, while the High Yield Index (including financials) fell by only 2.0% over the same period.