Yet we also see very strong inflows
into junk bond funds, based on the belief that these high yields represent value rather than information about default probabilities.
Not exact matches
To a lesser extent, it has also gone
into high - yield mutual
funds that buy
bonds rated below investment grade, known as
junk bonds to those who are dubious of them.»
But I'd be wary of venturing, as some investors seeking higher yields do,
into high - yield, or
junk,
bond funds, as they're generally more volatile than investment - grade
funds and don't hold up as well in periods of economic and market stress.
If you decide to pour your entire life savings
into a high yield
junk bond fund or stock that I mention and it tanks, don't come crying to me.
Even as
junk bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1
bond yields fell
into the 6 % range, investor demand for
bonds held up well, and the SPDR Barclays High Yield
Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1
Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate
Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1
Bond ETF (NYSEMKT: HYG) were among the best - performing
funds with returns of around 11 % to 12 %.
Because managers Dan Fuss and Kathleen Gaffney typically own a large helping of high - yield, or
junk,
bonds (those rated double - B or lower), as well as
bonds from developing nations, the
fund took a hit when investors bailed out of anything smacking of risk during the financial crisis and rushed
into Treasuries.