High-yield bonds represent “some of the best strategies to generate total return in today’s low-return environment,” Payson Swaffield, chief investment officer for fixed income at Eaton Vance Investment Managers, said in the article.
Nevertheless, the Federal Reserve’s eventual interest rate hike could pressure U.S. junk bond ETFs down the line. Additionally, a record 84% of professional investors surveyed by Bank of America in April said bonds were overvalued after years of quantitative easing and low interest rates.
SPDR Barclays High Yield Bond ETF
For more information on speculative-grade debt, visit our junk bonds category.
Tom Lydon’s clients own shares of HYL and JNK.