high-yield bond fund

(redirected from High-Yield Bond Funds)

High-Yield Bond Fund

A mutual fund that invests predominantly or exclusively in junk bonds. Because junk bonds have low credit ratings, they offer a comparatively high return. High-yield bond funds generally have portfolios containing at least two-thirds junk bonds. They provide a way for investors to take advantage of the return offered by a junk bond while also avoiding the risk of investing in a single bond at a high risk of default. See also: Investment grade.

high-yield bond fund

An investment company that attempts to produce unusually high income for its shareholders by maintaining a corporate bond portfolio that contains at minimum two thirds lower-rated bonds (Baa by Moody's; BBB by S&P).
References in periodicals archive ?
High-yield bond funds had $75 billion in new sales in 2010.
The problem is especially serious for offshore high-yield bond funds, which attracted over NT$200 billion (US$6.
Stock Fund Falls; International Equity Funds Up; High-Quality Corporate Bond Funds Positive; High-Yield Bond Funds Volatile
However, high-yield bond funds managed to deliver a total return of 3.
This would include equity funds and high-yield bond funds, which are more suitable for variable annuities than traditionally lower yielding choices such as money market funds.
Zitzewitz realized the problem a few years ago, when he noticed that prices on some high-yield bond funds he owned were following very predictable patterns.
8 /PRNewswire/ -- Standard & Poor's, a leading provider of independent investment research, ratings, and indices released its third- quarter review of high-yield bond funds today through its online Web service, Fund Advisor.
16, 1999-- Standard & Poor's today announced that 25 high-yield bond funds had become the first funds to be awarded 'Select Fund' status in a fixed-income category.
According to figures from Standard & Poor's mutual fund database, high-yield bond funds returned 12.
The new funds complement Transamerica's nine proprietary fund offerings, which include aggressive growth, balanced, small company, equity, money market, index, value, bond and high-yield bond funds.
All 354 high-yield bond funds tracked by Standard & Poor's ended the period in the black.
In its review, Fund Advisor determined that the winning streak that began for high-yield bond funds late last year continued into the first three months of 2003 as new money flowed into the category.