Financial

high-yield bond fund

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.
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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).
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive
A closed-end high-yield bond fund, EAD seeks a high level of current income and also capital appreciation to the extent it is consistent with its investment objective.
The Wells Fargo Global Dividend Opportunity Fund is a closed-end equity and high-yield bond fund. The fund's investment objective is to seek a high level of current income.
BANKING AND CREDIT NEWS-October 10, 2014--RBC Global Asset Management re-opens high-yield bond fund
Currently, high-yield bonds--IOUs issued by companies with dubious credit ratings--yield about 5%, which isn't high by anyone's standards, including those who manage high-yield bond funds. If you're thinking of reaching for a bit more yield through a high-yield bond fund, you might want to check again.
"This is a low-cost municipal bond fund, which currently has a yield of about 4.2%." Another high-yield bond fund the Keesees should consider is the BlackRock Debt Strategies Fund (DSU).
EAD is a closed-end high-yield bond fund, ERC is a closed-end income fund and ERH is a closed-end equity and high-yield bond fund.
Analysts say that the average high-yield bond fund has just over 8% in bonds rated below B, making the Dreyfus fund quite risky.
In addition to the latest mark posted by global bond funds, the weekly records set over the past three months include money market fund outflows ($61.8 billion), high-yield bond fund inflows ($1.19 billion), emerging market bond fund inflows ($1.05 billion) and UK equity fund inflows ($587 million).
EAD is a closed-end high-yield bond fund, ERC is a closed-end income fund, ERH is a closed-end equity and high-yield bond fund and EOD is a closed-end equity and high-yield bond fund.
EAD is a closed-end high-yield bond fund and seeks a high level of current income and as a secondary objective, capital appreciation to the extent it is consistent with its investment objective.
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