HYUP - The One Metric All High-Yield Investors Should Know
High-yield bonds have a reputation for volatility. But history shows that the US high-yield sector's yield to worst has been a reliable indicator of its return over the following five years.
In fact, US high-yield bonds have performed predictably, even through rough markets. The relationship between yield to worst and future five-year returns held steady during the global financial crisis, one of the most stressful periods of economic and market turmoil on record.
Why? High-yield bonds supply a consistent income stream that few other assets can match. And when high-yield issuers call their bonds before