High Yield: Equity-Like Returns... With Half the Risk? (white paper)

IN THIS PAPER: Investors often think of high-yield bonds as just another part of their fixed-income allocation. And when investors seek to reduce equity volatility, they typically shift assets to areas of the fixed-income universe with more stability, such as investment-grade bonds. But they may not realize that high yield offers strong risk-adjusted return potential and a low correlation to interest-rate-sensitive investments. That may argue for giving high yield its own seat at the asset-allocation table.