Analysis: Holders of high-yield bonds face uncertainty

10/21/2013 | Economist (tiered subscription model), The

High-yield bonds have been popular for some time because of the weak or nonexistent yields offered by other fixed-income investments, but that could easily change, according to The Economist. "If central banks start raising interest rates to deal with a resurgence of inflation, or if the global economy slips back into recession, junk-bond investors may suffer a nasty shock," the magazine notes. "But for the moment they are enjoying the ride."

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Economist (tiered subscription model), The

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