HYG - 3 Reasons To Pick High-Yield Bonds And Loans Over Equities

2024-05-31 11:34:55 ET

Summary

• Federal Reserve hikes have led to sharply higher rates across fixed-income asset classes.
• High-yield bonds and senior loans offer particularly attractive yields, in the 7.5% - 10.5% range.
• Yields are much higher than in the past, and when compared to equities.
• Risks and volatility are broadly lower as well.
• The overall risk-adjusted returns and yields of these securities seem very strong.

High-yield corporate bonds and senior loans currently offer investors three significant advantages relative to equities....

For further details see: