funds have been among the top-performing bond fund categories this year, according to Morningstar data.
In addition, the newsletter comments that despite the progress made in broadening and deepening the European high-yield bond
market, it has remained somewhat more exposed to market jitters in the last six months compared to leveraged loan markets.
The spread between high-yield bonds
and Treasuries zoomed to more than 20 percentage points, and high-yield bond
funds got clobbered, clocking an average 30% loss in the 12 months ended from November 2008.
While active managers may utilize certain tools to mitigate interest rate risk, these tools are generally not utilized by index-based high-yield bond
The bank hired Thomas Crystal from Royal Bank of Scotland Group Plc (LSE: RBS) to head high-yield bond
and loan sales in the US.
In percentage terms, the projections from the three main credit-rating agencies for defaults on high-yield bonds
approach levels last seen in 1933, according to an 87-year default-rate history compiled by Moody's Investors Service.
Expanding on Bookstaber and Jacob's work, Ramaswami (1991) reports success with a portfolio hedging strategy "based on the proposition that a high-yield bond
is a dynamic combination of equity and riskless bonds.
But purchasing high-yield bonds
will increase the risk/reward mix of your portfolio.
The recapitalization plan that the company has chosen enables the public shareholders to receive $14 in cash, a high-yield bond
worth $6, and one new share (the "stub") in the recapitalized entity valued at $14.
Neuberger Berman High Income Fund ("the Fund"), led since October 2005 by portfolio managers Ann Benjamin and Tom O'Reilly, has generated annualized returns substantially ahead of the high-yield bond
category average over the past five years through January 31, 2012, according to fund tracker Morningstar Inc.
The issue is how the high-yield bond
market will act in a rising-rate environment.
BANKING AND CREDIT NEWS-October 10, 2014--RBC Global Asset Management re-opens high-yield bond
Closed-end high-yield bond
fund, the Wells Fargo Advantage Income Opportunities Fund (NYSE MKT:EAD);closed-end income fund, the Wells Fargo Advantage Multi-Sector Income Fund (NYSE MKT:ERC); and closed-end equity and high-yield bond
fund, the Wells Fargo Advantage Utilities and High Income Fund (NYSE MKT:ERH) announced on Saturday that each will pay a dividend of USD0.
However, high-yield bond
funds managed to deliver a total return of 3.
Scott's deep, high-yield bond
investment experience and his extensive credit analysis expertise make him ideal to help expand upon SSgA's alpha-generation toolkit," said Paul Greff, director of Global Fixed Income for State Street Global Advisors.