Bond Insights

CONTENT WITH Bond Insights
Given that tighter financial conditions are on the horizon, high-yield bonds may not be as attractive as they have been over the past few years. We look at four factors that indicate it may be especially prudent to proceed with caution when it comes to high-yield bonds.
Prices have fallen sharply, creating an opportunity for income-oriented investors who can ride out the volatility. Investors should understand the risks, however.
Beginning quantitative tightening soon after rate hikes is a big departure from the Federal Reserve’s past policy.
Rising Treasury yields, declining commodity prices, and China’s credit pullback darken the picture for EM bonds.
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