Dispelling the myths of high yield bonds

The investment case for high yield bonds is compelling. They offer the potential for strong risk-adjusted returns over time and they can be a useful diversifier for investors. It is these merits that are convincing many investors to hold high yield bonds as part of their investment portfolio. For many investors, high yield bonds represent an important strategic component in their portfolio and it is not difficult to see why. Many investors have benefitted from the much lauded growth and development of the high yield bond market, which begun in the late 1980s and 1990s. Although the...