It is hardly a revelation to say that high yield bonds are more likely to default on interest paymen...
It is hardly a revelation to say that high yield bonds are more likely to default on interest payments than investment grade bonds. After all, that is what credit rating systems are all about. But credit ratings can only take a fund manager so far. They are limited by the fact that they offer only a snap-shot of a company's financial position and include no assumptions about its future trading position. Similarly, while there is no question that high yield bonds are more towards the nail-biting end of the market, it is a fact that the risk of default assumed to apply to UK and European bon...
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