High yield – high performance?

By September 19, 2017 02:11

High yield – high performance?

In Focus

High yield bonds – sometimes less charitably referred to as junk credit – are fixed income securities with a lower credit rating than investment grade corporate bonds or Treasuries. These bonds are believed to have a higher risk of default; to compensate for this, investors demand a higher yield. Despite having the same payoff structure as a typical fixed income security – in that they make regular coupon payments and commit to repay the full principal to investors on the maturity date – high yield bonds are arguably more similar to equities in terms of risk/return characteristics. Their returns tend to be more pro- cyclical (Figure 1), and are more correlated to equities than traditional fixed income (Figure 2).

By September 19, 2017 02:11


Featured Events & Webinars

Events & Webinars


"Is the #dollar’s stumble a sign of things to come?" -> https://www.opiniopro.com/2020/12/capital-group/is-the-dollars-stumble-a-sign-of-things-to-come/ by @CapitalGroup #usdollar #us #currency

#Webinar 9 December on #Frontier DebtMarkets @UBP_Group -> https://www.opiniopro.com/event/ubp-webinar-frontier-debt-markets/ #EMD #EMSovereignBonds

#Webinar 14 December @CapitalGroup -> "#2021 #Outlook: Turning points on the road to #recovery": https://www.opiniopro.com/event/capital-group-webinar-2021-outlook-turning-points-on-the-road-to-recovery/

We are pleased to announce the launch of our new #ESG thematic solution:
Nordea Global Social Empowerment Strategy

Can green and ethical investing help us build back better in a post-pandemic world? Find out in this @raconteur article written by @SustMeme.

It carries insights from a range of market perspectives and leading contributors with expertise in both sustainability and investment.

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