As Junk Bond ETF outflows accelerated in the past 6 weeks, MarketsMuse editor team has been intrigued by two most recent articles profiling where and whether it makes sense (and hence dollars) for high-yield bonds (and respective ETFs) within a portfolio.
Per articles today from RIA Larry Swedroe via ETF.com and front page of WSJ story by Katy Burne, profiling select institutional investors who are jumping in while retail investors jump ship, the yearn for yield remains a hotly-debated topic.
Swedroe says Nyet!: “Historically, the additional risk of high-yield bonds hasn’t been well-rewarded. And today, with credit spreads at historically low levels, the outlook doesn’t look promising. For the best risk-adjusted returns, investors are better off sticking with high-quality bonds.” Continue reading