Profiting from ultra-low interest rates - US high-yield bonds

As we discussed in our first article on US inflation-linked bonds, ultra-low interest rates are not going away. The combination of subdued economic growth and central bank policy has driven down yields of developed government bonds to historical lows. Currently, more than $10 trillion (£7.65 trillion) of government bonds are trading with negative yields. One area that continues to offer investors some yield is the US high-yield bond market. Here, investors can still pocket a yield in excess of 6% - not bad in today's yield starved environment. The major risk to our view would be the e...