Market Vectors® Intl Hi-Yld Bd ETF

A third consideration that combines the credit exposure with floating rate exposure is business development companies.

Are there any other strategies that investors might want to consider in this environment?

Real yields in emerging markets (or EM) have remained at compelling levels over the past few years.

VanEck Fallen angel high yield bonds were up 4.8% year to date through April 30, outperforming the broader high yield bond market which rose 3.9%.[1.Source of all data unless otherwise noted: FactSet. Data as of March 31, 2017. Fallen angels are high yield corporate bonds that are originally issued with investment grade credit ratings, and […]

AB Is This a Global Story? In our view, designing a high-yield allocation today should involve a global perspective. Our analysis focuses on US high-yield bonds, in large part because this market provides a lengthier historical data set than other high-yield markets do. But the global market for high-yield bonds continues to expand and evolve: […]

AB A Place at the Asset-Allocation Table For investors seeking to control volatility in their equity portfolios while still maintaining return potential, high-yield bonds could represent an effective solution. A typical approach to moderating equity volatility is to reallocate assets to the greater stability of investment-grade bonds, or even cash. But this can exact a […]

AB Looks Are Deceiving But even though high-yield bonds look like other bonds, they don’t necessarily act like other bonds. This insight can have important implications for how investors consider them in an overall portfolio context. High-yield performance patterns, for example, don’t track those of other fixed-income sectors very closely over the long term. Looking […]

In this series, we’ll discuss the many advantages of high yield bonds, their correlation with other asset classes, the rise of global high yield markets, and why high yield bonds should command a place in a portfolio.

The demand for emerging market bonds improved when fear of rate hikes abated in 2016. Fundamentals are still favorable for emerging debt markets.

Donald Trump’s surprise presidential win and the rising dollar called for a sell-off in most emerging market currencies like Mexico and Turkey.

Although the chances of a Federal Reserve rate hike for December looks positive, this doesn’t stop the emerging market (EEM) debt from outperforming other asset classes.

In her speech at the Jackson Hole Economic Symposium, Fed chair Janet Yellen expressed optimism about another rate hike in the United States.

Emerging market (or EM) bonds (PCY) offer diversified exposure with higher yields compared to their developed market equivalents (IHY).

The Federal Reserve kept its key interest rate unchanged in its policy meeting this week while signaling a possible rate hike in December.

While around 30% of developed market bonds (IHY) are trading at negative yields, emerging market debts (HYEM) are offering attractive returns.

Fallen angels (ANGL) have had lower average default rates than the broad high yield bond (HYEM)(IHY) market historically (3.58% versus 4.19%).

Historically, it seems that fallen angels generally perform well across interest rate environments.

About 75% of fallen angel bonds (ANGL) were rated BB as of May 31, 2016. Original-issue investment-grade bond issuers tend to be larger.