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 ?
And while the risks are still very real, high-yield bond funds continue to deliver hot returns.
Investor s redeemed several billion dollars' worth of shares in US high-yield bond funds following the Third Avenue Focused Credit Fund's redemption halt in December, highlighting the importance of assessing liquidity risks within mutual funds.
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.
Closed end high-yield bond funds, the Wells Fargo Advantage Income Opportunities Fund (NYSE MKT:EAD) and the Wells Fargo Advantage Multi-Sector Income Fund (NYSE MKT:ERC); and closed-end equity and high-yield bond fund, the Wells Fargo Advantage Utilities and High Income Fund (NYSE MKT:ERH) each declared on Friday a dividend of USD0.
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.
High-yield bond funds saw year-to-date flows climb to $7.
However, high-yield bond funds managed to deliver a total return of 3.
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.
The two Oppenheimer Rochester funds mentioned above are investment-grade funds, which are less likely to hold Puerto Rico bonds than high-yield bond funds.
Closed-end high-yield bond funds Wells Fargo Advantage Income Opportunities Fund (NYSE Amex:EAD), the Wells Fargo Advantage Multi-Sector Income Fund (NYSE Amex:ERC) and the Wells Fargo Advantage Utilities and High Income Fund (NYSE Amex:ERH) released on Friday monthly dividends for July, August and September.
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.