Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

High yield or junk bonds have been riding high since the start of 2017. The debts issued by firms with less than stellar credit have seen a surge in interest as the combination of low rates – thanks to the Fed – and a growing economy has made them quite attractive to investors. In fact, junk has been one of the best performing asset classes all year.

The problem is that the high times in high yield might finally be cracking.

Investors who loaded up on high yield bonds for both larger coupons and capital appreciation might get a rude awakening in the new year.

Junks Big Time Climb

On the surface, it’s easy to see how junk has done well. Despite raising rates four times or so this cycle, when you are starting in the basement, there’s plenty of room before you hit the top. Interest rates remain at historic lows. That’s still causing investors to search for income in some non-traditional sources. With junk bonds paying around 5 to 8%, that’s a lot of yield for income-starved investors.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 752004817
News

The Market Wrap for February 15: Trade Is Back in the Saddle

The good news kept coming this week for investors. After last week’s Federal Reserve-induced...

Premium Defensive%20stocks
News

Are Defensive Stocks Still Cheap?

One of the common themes for 2018 and now 2019, has been the return to volatility. Risks have...

News

Trending: Delivery Industry Sees Amazon Threat

Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with...