Once the U.S. economy gets back on track and into growth mode, interest rates will inevitably rise, which would take away demand for these fixed income instruments. Some analysts have reported that 2013 could be the year for a bond market exodus, but for now the signs do not support this. The U.S. economy still has plenty of fundamentals in need of repair, such as a solid job market and the strength of the U.S. dollar.
Market Vectors International High Yield Bond ETF
Tisha Guerrero contributed to this article.