The case for high-yield bond investing.
(Note: related companies are at base of the story and all the sources
listed in the “Balanced” section)
High-yield bonds, once thought of as appropriate only for sophisticated investors or bond investment houses, have become more commonplace in recent years with the spread of high-yield bond ETFs. Through these ETFs, individual investors can have a diversified exposure to an investment class with characteristics of both bonds and equities. But investing in high-yield bonds is not for the faint of heart. High-yield bonds performed poorly in 2018 causing the spread between junk bonds and treasuries to widen. This potential for higher return begs the question:
Is now a good time to invest in high-yield bonds?