Investors flock back into high yield

In the dark days of the banking crisis, investors could not exit high yield bonds fast enough as downgrades forced sellers to market. They found few buyers when they got there. Bond prices fell hard, no more so than in the high yield sector. From Summer 2007 to the end of last year, the IMA Sterling High Yield sector lost around 30% of its value. When the dust cleared, investors soon realised their fears had been overplayed. The sector recovered sharply. Parmeshwar Chadha, co-manager of the Newton Global High Yield Bond fund, says: "In late 2008 and into early 2009, all high yield ...