Research summary

Navigating the crossover bond market beyond the pandemic

October 01, 2021

Over time, crossovers tend to generate higher risk-adjusted returns than BBBs or high yield
A figure shows three solid lines that plot the risk-adjusted returns of crossover, BBB, and high-yield bonds from April 2006 through August 2021. Through that period, crossovers tended to outperform BBBs and high yield.

Economic downturns: Each time is different

Where crossover opportunities stand now

Active Fixed Income at Vanguard
The figure shows the active fixed income numbers for taxable and municiple bond
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