Active investing may matter more than risk trade
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.
Author: Norman P. Boucher, Portfolio Manager, and Paul D. Scanlon, CFA
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
Gas, chemicals break new ground in high yield
Fundamental changes in old industries, from gas to chemicals to telecommunications, are shaping the landscape of high-yield investment opportunities. As interest rates rise, bond prices fall. Lower-rated bonds may offer higher yields in return for more risk.