Sean Hanlon, CEO and Co-Chief Investment Officer of Hanlon Investment Management, September 21st article in Forbes – US High Yield Bonds Serving An Unusual Role, discusses that while today’s economic environment has been challenging for fixed income investors, high yield bonds have provided some insulation from rising interest rates and the strong dollar that are affecting other fixed income asset classes this year.
“So why are high yield bonds doing better than most? High yield bonds, being below investment grade, tend to be more sensitive to the economic environment, like stocks, than they are to interest rates. The high yield bond market, oddly, has been a bit of a haven this year. Traditionally not seen as such, high yield bonds have provided some insulation from rising interest rates and the strong dollar that are affecting the fixed income market this year.”
Read the full article – Here
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