The Outlook For High Yield Bonds In 2015 – Get High Yield Corporate Bond Fund Definition

Wed, Jun 26, 2013

The Outlook For High Yield Bonds In The Rest Of 2015

Since the Fed pushed rates to zero and forced investors to buy bonds with higher risk profiles to eke out a 5% or 6% yield, high yield debt has Outlook For High Yield Bonds In 2015been one of the greatest benefactors of the policy.

For four years this policy kept yields falling and bond prices rising. It was a clear bubble. And it was clear to any experienced investor that it wouldn’t last.

But it didn’t matter for years. There was always a great fool to keep prices up.

This situation has happened many times in the financial markets. However, it always ends the same way – badly.

That ending is in progress right now.

The iBoxx High Yield Corporate Bond Fund (NYSE:HYG) has fallen to six lows:

 

And the JP Morgan Emerging Markets Bond Fund (NYSE:EMB) has fallen even harder:

These drops are a serious concern for any investor.

We talk about how financial assets build up a trust with potential investors. High yield debt in the United States and from emerging markets has built up a lot of trust with investors since bottoming out in 2008.

That trust is gone. And it’s going to take a long time to get it back.

That’s why we here at Contrarian Insights continue to have a negative outlook for high yield debt in 2015.

There are great times to buy high-yield bonds and bad times. A few months ago was the worst time to buy high yield debt.

Today is a better time, but still not a good time to be an investor in high yield debt.

A few months from now will probably be an even better opportunity to buy into high yield bonds.

The Fed will likely keep interest rates low for years to come. That will likely put a floor in high-yield bonds. But successful Contrarian Investors don’t buy any dips, they buy bottoms.

Right now there’s a lot more Risk In High Yield Bonds than there is potential rewards.

Join Now

The Group of Big Investors in United States.

Your Email

Outlook For High Yield Bonds In 2015

Like This?

Share This:

Facebook Twitter Share on Google+ Digg Reddit LinkedIn Pinterest StumbleUpon

Recent Post

How to Buy Commodity Stocks Online 2015 - Learn here it’s Safe to Investment in Commodity Market

The how to invest in commodities stock 2015 can correct any fluctuations that investors may have felt recently in their fortunes. The beginning of the year was on a shaky note with the direction of profits not very clear. However, with the months wearing on, the commodities market is once..... Read More...

Is Gold and Silver a Good Investment in 2015? Gold Coins Investment Best Idea for a Great Return

The is investing in gold a good idea right now is the hot conversation for small and big time investors alike. With the crash in real estate markets and the continued disfavor of bonds, gold is the only option which is fast emerging as the fail safe investment. Moreover, gold..... Read More...

Top 10 Best Stocks To Invest In Right Now in 2015, Learn Here How to Buy Stock Now

The top ten best stocks to invest in 2015 can help investors consolidate gains this year with a great margin. These are the stocks one’s would prefer to buy and hold onto for a long time. There are more winners here than losers which sped way past the rest..... Read More...

Best Investment Strategy for High Income Earners, Learn Here Investment Strategies for Buying Stocks

The investment strategies for high income earners are a few of the best special financial tips to help in wealth management. The top 2-3 per cent of the high income earners has a challenging task in holding onto their money and investment may be the only way out to avoid..... Read More...

How to Make Money in the Stock Market with Little Money for beginners, Future Wealth

The how to make money in the stock market with little money is a sure fire way to get out a less than perfect existence. It is a means other catapult in to luxury almost overnight as has been shown by many an investor in all times. Investing in the..... Read More...