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Seeking Income In High Yield Bonds
Published Tue, 21 May 2019 05:35:31 -0400 on Seeking Alpha
Global high yield bonds sold off amid the latest spike in market volatility, along with other risk assets. Yet this does not change our view that exposure to the asset class is important for fixed income investors in an environment where carry, or coupon income, is becoming the main driver of bond returns.
Chart of the week Global high yield bond spreads, 2017-2019
Past performance is not a reliable indicator of current or future results. It is not possible to invest directly in an index. Sources: BlackRock Investment Institute, with data from Bloomberg Barclays, May 2019. Notes: The spread is the difference between the yield of a certain index and that of corresponding comparable-duration government bonds. The indexes used are the Bloomberg Barclays Global High Yield, Asia High Yield, U.S. Corporate High Yield and Pan-European Corporate High Yield indexes.
The recent selloff in global high yield is evident in the small upticks in the far right of the chart above. High yield bond spreads - the difference in yields between high yield bonds and comparative government bonds - have widened, as perceived safe havens outperformed. These moves come amid a longer-term widening trend in credit spreads over the past couple of years. We see rates generally stable in the near term, with income taking back the reins from price changes as the key driver of credit returns in the quarters ahead, as we write in our latest Fixed income strategy update Carry is king. The patient... Read more
| Stock name | Last trade | P/E | Earnings/Share | Dividend/Share | Dividend yield | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DREYFUS HIGH YIELD STRATEGIES | 3.07 | 0.0 | 0.00 | 0.27 | 9.63 | |||||||
| MFS INTERMEDIATE HIGH INCOME FUND | 2.68 | 0.0 | 0.00 | 0.00 | 9.08 | |||||||
| CS HIGH YIELD BOND FUND | 2.58 | 0.0 | 0.00 | 0.00 | 8.87 | |||||||
| FIRST TRUST HIGHOME LONG/SHORT FUND | 14.97 | 0.0 | 0.00 | 0.00 | 8.82 | |||||||
| PIONEER HIGH INCOME TRUST | 9.29 | 0.0 | 0.00 | 0.00 | 8.72 | |||||||
| WELLS FARGO ADV INCOME OPP FUND | 8.20 | 0.0 | 0.00 | 0.00 | 8.61 | |||||||
| ARES DYNAMIC CREDIT ALLOCATION FUND | 15.08 | 0.0 | 0.00 | 0.00 | 8.56 | |||||||
| CREDIT SUISSE ASSET MANAGEMENT INCOME FUND | 3.16 | 0.0 | 0.00 | 0.27 | 8.52 | |||||||
| WA HIGH INCOME FUND II | 6.76 | 0.0 | 0.00 | 0.00 | 8.27 | |||||||
| BLACKROCK CORPORATE HIGH YIELD FUND VI | 10.76 | 0.0 | 0.00 | 0.00 | 8.01 | |||||||
| FIRST TRUST STRATEGIC HIGH INCOME FUND II | 12.35 | 0.0 | 0.00 | 0.00 | 7.77 | |||||||
| BLACKROCK DEBT STRATEGIES FUND | 10.78 | 0.0 | 0.00 | 0.00 | 7.63 | |||||||
| NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND | 12.01 | 0.0 | 0.00 | 0.98 | 7.45 | |||||||
| MASSMUTUAL CORP INV | 16.54 | 0.0 | 0.00 | 1.20 | 7.27 | |||||||
| HIGH YIELD INCOME FUND | 15.21 | 0.0 | 0.00 | 0.00 | 7.00 | |||||||
| WESTERN ASSET HIGH INCOME OPPORTUNITY FUND | 5.07 | 0.0 | 0.00 | 0.00 | 6.98 | |||||||
| SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF | 108.94 | 0.0 | 0.00 | 6.07 | 5.58 | |||||||
| ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND | 87.32 | 0.0 | 0.00 | 4.60 | 5.27 |