• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Best Managed Accounts
  • Forex Robots
  • Forex Brokers
  • Forex Signals
  • Social Trading Platforms

Forex Traders Guide

The Ultimate Forex Knowledge Base

  • Robots
  • Start Guide
  • Glossary
  • Basics
    • Currency Pairs
    • Charts
    • Candlesticks
    • Trading Tips
  • Strategies
    • Technical Analysis
    • Fundamental Analysis
    • Day Trading
    • Scalping
    • Swing Trading
    • Trend Following
  • News
  • Reviews
    • Forex Robots
    • Forex Brokers
  • Mustreads
  • Crypto Trading

Junk-Bond Managers Venture Into Unrated Debt

September 6, 2021 by Forex Winner Leave a Comment

Junk-Bond Managers Venture Into Unrated Debt

Source: The Wall Street Journal

Record-low interest rates on riskier corporate bonds are pushing money managers to look further ahead in an effort to boost returns. DXY up +0.16%, EUR USD down -0.12%.

  • Once reserved for the safest types of government bonds, some managers of speculative-grade bond funds are piling into debt with record-low credit ratings.
  • No available strategy is likely to satisfy fully because of the recent low-rate climate.
  • The average speculative-grade U.S. corporate bond yield dropped to a historic low of 3.53% this summer.
  • The average extra yield that investors demand to hold low-rated bonds rather than ultrasafe Treasury is near a record low.
  • Low yields impose challenges to all fixed-income investors, including those purchasing higher-quality, investment-grade bonds.
  • Low yields will cause more anxiety for high-yield fund managers, considering that purchasing the wrong bonds can indicate dealing with defaults and drawn-out bankruptcies.
  • The managers have been piling into the lowest-rated speculative-grade bonds, those rated triple-C or lower.
  • Investors could obtain 2.79 percentage points of extra spread by buying triple-C bonds rather than those rated one tier higher.

Best Forex Robots ›

Compare leading trading systems on the market

Filed Under: Forex News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Best Forex Robots

  1. Techberry 8.7
  2. Happy Forex 8.0
  3. Forex Fury 7.7
  4. Promax Gold EA 6.8
  5. Gump EA 6.4

Best Forex Brokers

  1. Techberry 8.7
  2. XM 8.2
  3. eToro 8.1
  4. Pepperstone 8.1
  5. IG 8.0

Latest News

Tron DAO to Pull Out Additional 3 Billion TRX

Tron DAO to Pull Out Additional 3 Billion TRX

June 16, 2022

Jabil’s Q3 Earnings Per Share Beats Estimate by 10%, Upgrades Guidance

Jabil’s Q3 Earnings Per Share Beats Estimate by 10%, Upgrades Guidance

June 16, 2022

Federal Reserve Hints at Further Policy Tightening After 75-Basis Point Hike

Federal Reserve Hints at Further Policy Tightening After 75-Basis Point Hike

June 16, 2022

Footer

Forex Broker Reviews

OctaFX Broker

OctaFX Review

January 24, 2020 By Forex Winner

Hot Forex

HotForex Review

November 10, 2019 By Forex Winner

exness

Exness Review

September 10, 2019 By Forex Winner

Forex Robot Reviews

Profit Lab EA Review

Profit Lab EA Review

June 28, 2022 By Forex Winner

GoodMorning EA

GoodMorning EA Review

June 23, 2022 By Forex Winner

FxHT Daily Trend EA Review

FxHT Daily Trend EA Review

June 22, 2022 By Forex Winner

EMAIL NEWSLETTER

Sign up to receive exclusive forex trading guides and insights from our team of experts!

Copyright © 2022 · Forex Traders Guide · About Us · Contact Us
Privacy Policy · Risk Disclosure