Returns possible as grim economic outlook already priced in

Up until the end of 2008, high-yielding bonds continued their dismal performance as illustrated by v...

Up until the end of 2008, high-yielding bonds continued their dismal performance as illustrated by various indices - the Merrill Lynch Euro High Yield Index (euros) fell 23.7% and the IMA Sterling High Yield sector lost 18.2% over the last quarter of 2008 alone. That said, the IMA Sterling Strategic Bond sector outperformed these high-yield indices, returning a loss of only 6.3% over the same period. This was due to the higher weighting of long investment-grade bond funds in the sector. Credit spreads have widened across all credit ratings and hence the negative returns generally. Inves...