The Traderszone Network

Published in TZ Latest News 29 March, 2017 by The TZ Newswire Staff

PIMCO on understanding High Yield Bonds

An ‘education’ piece from PIMCO, could be interesting &/or useful on a subdued sort of Asian afternoon
High yield bonds – defined as corporate bonds rated below BBB− or Baa3 by established credit rating agencies – can play an important role in many portfolios. They typically offer higher coupons than government bonds or high grade corporates and have the potential for price appreciation in the event of an improvement in the economy, or performance of the issuing company (of course, if these conditions worsen, then prices can also go down).

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