WDI - Why Investors Shouldn't Take A Time-Out From High Yield

• The US high yield market has seen a strong comeback since its panic-driven downturn at the onset of the COVID-19 pandemic. But as today’s economic recovery gathers steam, a new fear has seized investors: rising bond yields.
• Bonds are sensitive to interest-rate movements, and investors can initially suffer negative returns when yields rise. But if your investment horizon is longer than a few months, short-term losses probably don’t matter that much.
• Whether investors should root for yields to rise also depends on the size of the yield increase. The larger the yield increase, the bigger the price drop.

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