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...

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