High Yield Bonds – History Shows that Reaching for Yield Can Lead to Disaster
Reaching for income in high yield bonds is little different than ascending the top step of a ladder to get something just out of reach.
Reaching for income in high yield bonds is little different than ascending the top step of a ladder to get something just out of reach.
The FOMC’s meeting minutes paint an optimistic tone, projecting confidence that a shift to “neutral” will be enough to bring down inflation.
For the past four decades, bonds have been on a great run. Investing in bonds today will in most cases yield you a negative real return.
Decades of economic policy have whittled bonds down leaving nothing left for investors. It’s time to shift your bond strategy.
We explore reasons why investors could reasonably draw conclusions of future returns from history, but still be caught on the wrong side of the trade.
With rates at historic lows, signs of inflation, and an asymmetric interest rate risk profile, where does one find alpha in a bond portfolio?