High Yield Bonds

What are High Yield Bonds funds?

High yield bonds can be issued by either governments (from emerging markets) or companies and are deemed higher risk. For example, there may be more risk of the government or company not being able to pay back their loans. To compensate for this higher risk, the yield on these bonds tends to be higher.This category of Elite Rated and Radar funds refers to those investing predominantly in bonds below triple BBB minus fixed income securities.