Improving fundamental conditions in the high-yield bond sector may make the ability to research sectors and individual issues more important in a risk-on/risk-off environment.
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