high-yield bond fund

(redirected from High Yield 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.
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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 ?
* Municipal high yield funds. These funds hold tax-exempt municipal bonds from issuers that do not have a sterling credit rating.
High yield funds saw outflows of nearly $3.3 billion in June, because as Mazza said in June "high yield is suffering from investors getting nervous about rate hikes."
In July, though, high yield funds bounced back, bringing in $856 million of inflows.
Prior to joining Hotchkis & Wiley, Mak worked for 12-years at PIMCO in multiple roles ranging from credit analyst to high yield portfolio manager, primarily focused on internal high yield funds.
Flows into US Equity Funds jumped to a one year high during the week ending June 15 while US Bond Funds, despite the outflows from the US high yield funds, enjoyed their second strongest week year-to-date.