High yield thrives amid equityvolatility

With the sterling and European high-yield markets doubling in size over the past two years, investors now have an opportunity to invest in an asset class that has existed successfully in the US for more than 20 years

Investors have two basic needs, namely income and growth. At a time when interest rates are at a 40-year low and stock markets have fallen and remain volatile, it is easy to see why many investors are selecting high-yield bonds. High-yield bonds are those issued by companies, carrying a sub-investment grade credit rating ' BB or lower. While they carry a higher level of risk than Government and investment grade bonds, this risk can be managed and the overall returns achieved can be very attractive. High yield provides the ideal opportunity to generate income from investments. With a ty...