The US high yield bond market has been able to soften the impact of higher interest rates due to the availability of more diversified sources of capital. High yield companies now have access to private credit markets in addition to the public high yield bond market. The growth of the private credit market has provided borrowers with alternative financing options and has reduced their dependence on traditional bank lending. The US economy has also performed better than expected, with inflation falling and the high yield default rate remaining low. Lending standards have eased, further supporting the high yield market. Overall, the broader financing options available to high yield companies have helped them navigate the higher rate environment and manage their debt burdens effectively. [34a697dd]