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 ?
It notes that Schwab's fixed income allocation, which outperformed in the third quarter, year to date and over a year, is "heavily invested in historically riskier assets," in international and high-yield bond funds.
In recent weeks high-yield bond funds have seen their highest inflows on record.
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.
Investors 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.
That would test the liquidity of US high-yield bond funds and exchange traded funds.
High-yield bond funds. If you're looking for yields, why not put some money into a fund with a name that promises steep payouts?
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.
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 USD0.068, USD0.10 and USD0.075 per share, respectively.
In the LiveWell Mutual Fund IRA series, the additions include socially responsible equity options; gold and global real estate funds; balanced funds; five international large-cap equity funds; and three high-yield bond funds.
FINRA's Investor Alert, "The Grass Isn't Always Greener--Chasing Return in a Challenging Investment Environment," was prompted by significant recent inflows into investments like high-yield bond funds, floating-rate loan funds and structured retail products.
In another sign of risk aversion, high-yield bond funds saw big outflows while India-focused equity funds suffered their seventh straight week of outflows, according to data from fund-tracker EPFR Global.
According to the FSC, some offshore high-yield bond funds actually tap their principal to keep their interest payments high.