Is high yield worth the risk?

HIGH YIELD

clock • 4 min read

As fixed income investors turn to high yield amid talk of the end of the bond bull run, Ken Rayner, director at Rayner Spencer Mills, urges caution...

Sterling high yield bond funds are defined as those which invest at least 80% of their assets in sterling denominated (or hedged back to sterling) fixed interest securities, and at least 50% in below BBB-minus fixed interest securities (as measured by Standard and Poors or an equivalent external rating agency), including convertibles, preference shares and permanent interest bearing shares. The ability for bond investors to make significant gains over the coming years has been questioned recently and yet we have continued to see support for a wide range of assets through 2012. The mai...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Fixed Income

Fed rate cuts: The right or wrong time to buy fixed income?

Fed rate cuts: The right or wrong time to buy fixed income?

The reality for fixed income is complicated

Darius McDermott
clock 02 October 2024 • 4 min read
Buyer's remorse? David Roberts' bond market insights

Buyer's remorse? David Roberts' bond market insights

The best time to catch a falling knife is after it has hit the ground

David Roberts
clock 28 May 2024 • 5 min read
Partner Insight: Vanguard's Fixed Income Update - Yields decline on dovish Fed rhetoric in November

Partner Insight: Vanguard's Fixed Income Update - Yields decline on dovish Fed rhetoric in November

The key themes in global bond markets over the past month.

Kunal Mehta, Head of Fixed Income Specialist Team, Vanguard, Europe and Suparna Sampath, Fixed Income Product Specialist, Vanguard, Europe
clock 01 February 2024 • 8 min read