5 Reasons To Invest In High-Yield Bonds Today

Andres Victorero

By AJ Rivers, CFA, FRM, CAIA & Will Smith, CFA

Because the US financial system begins to really feel the burden of the Federal Reserve’s fee hikes, buyers have grown leery of US high-yield company bonds. On the floor, that is sensible. Traditionally, credit score circumstances

Few issues mature in 2023 and 2024, after which maturities increase from 2025 through 2029.

Barclays, Bloomberg, and AllianceBernstein

Starting yield closely parallels return over the next five years in most environments. Today's yield to worst is 8.5%.

Barclays, Bloomberg, and AB

Rebounds outpacing drawdowns in 7 out of the last 8 cycles

Bloomberg and AB

Bars show equities underperforming high yield in 9 out of 10 high-yield drawdowns since 1998.

Bloomberg and AB