Comparing high yield and equities? Consider risk

Comparing high yield and equities? Consider risk

The high-yield sector may offer more attractive returns with potentially lower volatility than equities, based on a comparison of the historical profiles of the two asset classes and analysis of current credit risk conditions.

As interest rates rise, bond prices fall. Lower-rated bonds may offer higher yields in return for more risk.

Distress in the high-yield sector, 2011 vs. 2012

 

 

More in: Fixed income