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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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 ?
High yield bond funds, by contrast, suffered substantial outflows during 2017 and in all but one month year-to-date.
High yield bond funds had positive inflows for the past 9 out of 10 weeks, and investment grade bonds funds saw positive inflows for the past 26 out of 27 weeks.
With recent publicity around some high yield bond funds suffering large investor outflows, and, for example, Third Avenue Management looking to block investors from withdrawing money from a nearly $1 billion junk bond fund that it is trying to liquidate, A.M.
Data from EPFR Global showed in the week ending May 23, emerging markets equity, commodities and energy sector funds and Europe equity funds all saw redemptions in excess of $1 billion, while high yield bond funds had their biggest outflows in over nine months.
EPFR Global-tracked High Yield Bond Funds posted their biggest weekly inflow on record while the geographically diversified Global Emerging Market Equity Funds enjoyed their best week since early May and Emerging Markets Bond Funds snapped their four week, $5.6 billion outflow streak.
"But, as has been the case for the past three months, the latest flow data contained some bullish signals," citing new money in high yield bond funds and outperforming U.S.
The correlations between net flows and market returns range from 12 percent for government bond funds to 72 percent for high yield bond funds. In most cases, these correlations can be attributed almost entirely to the unexpected component of net flows.
Global investors sought high yields again last week, with EPFR Global-tracked High Yield Bond Funds seeing year-to-date inflows nearing almost three times that of the full year total for 2011 last week.
Expectations that the US Federal Reserve will unveil another quantitative easing program later this month helped EPFR Global-tracked high yield bond funds snap a five week, $10.8 billion outflow streak during a week that saw actively managed US large cap growth equity funds post their biggest inflow since mid-4Q07.
Redemptions from most EPFR Global-tracked fund groups soared, with High Yield Bond Funds hit particularly hard, as investors liquidated positions and parked their cash in Money Market Funds.
But underlying appetite for risk persisted, with emerging market local currency and high yield bond funds enjoying solid weeks, EPFR noted.
High Yield Bond Funds, including funds investing mainly in US and European issues, posted their second largest weekly outflow on record as investors withdrew $2.09 billion from these funds.