US High Yield Beta

Mellon’s US High Yield Beta strategy offers an efficient, disciplined and systematic approach designed to capture high yield returns benchmarked against the Bloomberg® Barclays US High Yield Index.

Objective

The strategy is designed to overcome the most significant challenges in today’s high-yield marketplace— high transaction costs and lack of liquidity—by providing liquid, cost-effective beta exposure that covers the full credit quality spectrum of the US high yield market.

Approach

Mellon’s unique approach to investing in high yield utilizes our cutting-edge trading innovation to cost-effectively source diversified baskets of bonds through credit portfolio trading. The strategy leverages Mellon’s proprietary, time-tested credit model to enhance security selection within the high yield universe, mitigating exposure to lower quality issuers and over-valued bonds. A key objective of this strategy is to maintain a constant beta of 1.0 against the benchmark while actively managing systematic (market) and idiosyncratic (issuer-specific) risk exposures.