High Yield Bonds
What are High Yield bonds?
High yield bonds are investment instruments issued by countries or companies deemed by external rating agencies as being at a higher risk of defaulting on the loan. In order to compensate for this greater risk, these bonds tend to offer higher rates of interest than bonds with a better rating.
Why consider High Yield bonds?
The sector is one of the highest yielding sectors of the fixed income universe, and has the potential to offer risk-aware investors an attractive source of income.