The only time the spread was lower: June 2007, which was an exceptionally bad time to buy high-yield bonds
I conclude that Christensen and Faria's findings, however useful in their own right, do not contradict the existence of an equity component in nonconvertible high-yield bonds
-- These typically comprise 20 to 40 percent of total funding and can command a wide range of interest rates but are normally 400 to 500 basis points over prime.
BOTTOM 5 HIGH-YIELD BOND
FUNDS 6-Month 1-Year Fund Name Total Return(*) Total Return Principal High-Yield B 0.
What they fail to recognize is that high-yield bond
investing is more analogous to total return stock investing than to fixed income investing.
Portfolio Manager Michael Buchanan, CFA, who focused on high-yield bond
management for BlackRock, recently left the firm.
Fallen angels-which are issuers that fall from investment grade ('BBB-' and above) to speculative grade ('BB+' and below)-accounted for 42% of total volume generated in the high-yield bond
As in prior quarters, however, defaults, distressed recoveries and downgrades in the high-yield bond
market continued to distress CDO transactions collateralized by high-yield bonds
The US platform also offers Deutsche X-trackers High Yield Corporate Bond-Interest Rate Hedged ETF (Bats: HYIH), which provides exposure to high-yield bonds
while potentially reducing the interest rate risk in an investment portfolio.
According to several asset managers/advisers, insurers have turned to high-yield bonds
, bank loans with floating rates, mezzanine debt, mortgage trading securities and global infrastructure securities.
, better known as junk bonds because of their low credit rating and low sensitivity to interest rates, were added, with a smattering of mutual funds that invest in bonds overseas.
Figures indicate that the percentage of high-yield bonds
trading at distressed levels has dropped in the US.