(Harvest) After a strong 2017, high-yield bonds have struggled this year as US Treasury yields spiked and inflation potential stirred up fears that the Federal Reserve may raise borrowing costs more aggressively. With the US credit cycle in its 10th year and credit spreads—the extra yield high-yield bonds offer over comparable government debt—near record lows, some investors are no doubt asking themselves whether high yield’s potential return is worth the risk.
Wary of High Yield? Three Reasons Not to Be
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