Stubbornly low interest rates still have many investors reaching far and wide for yield. But for others, high-yield corporate bonds are a bridge too far. Are they too risky? Do they hold up in volatile markets? Do they represent too much of an unknown?
In fact, high-yield bonds have historically performed predictably - even in rough market environments. A historical overview of high yield shows that the sector's yield to worst at the start of the investment period has been a remarkably reliable indicator of its returns over the subsequent five years. That relationship held