Should You Invest In High-Yield Bonds Right Now? (2024)

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e=r.searchBoxForm.querySelector("[name=fr]"),n=r.searchBoxForm.querySelector("[name=fr2]");e&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr&&(e.value=i.searchBox.params.fr,e.disabled=!1),n&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr2&&(n.value=i.searchBox.params.fr2,n.disabled=!1),r.searchBoxForm.submit()}}),1e3)},r.recognition.onspeechstart=function(){},r.recognition.onspeechend=function(){r.recognition.stop()},r.recognition.onerror=function(){r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_error")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play()},r.recognition.onaudiostart=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.add("listening")},r.recognition.onaudioend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("listening")},r.recognition.onsoundstart=function(){r.hideTrending(r),r.noSpeech=!1,r.speechButtonContainer&&(r.speechButtonContainer.classList.remove("listening"),r.speechButtonContainer.classList.add("speaking"))},r.recognition.onsoundend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("speaking")},r.recognition.onstart=function(){r.recognitionInit(r),r.startRecognition(r)},r.recognition.onend=function(){r.isRecognitionStart=!1,0==r.noSpeech&&""==r.speechResult&&(r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_nomatch")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play())},document&&document.dispatchEvent&&document.dispatchEvent(new Event("VOICE_JS_READY"))}}o.I18n=m,o.prototype.renderPermissionGuide=function(e){var n='\n

    \n

    \n

    \n

    \n

    \n

    \n

    \n

    '.concat(e.i18n.t("search.voice.permission_title"),'

    \n

    ').concat(e.i18n.t("search.voice.permission_text"),"

    \n

    \n

    \n

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    \n

    \n

    \n

    \n

    \n

    \n \n \n \n \n \n \n

    \n

    \n

    \n \n \n '.concat(e.i18n.t("search.voice.recognition_retry"),'\n

    \n

    \n

    \n

    \n

    \n

    \n ').concat(e.i18n.t("search.voice.trending_title"),'\n \n

    \n

    \n

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e)&&("SpeechGrammarList"in e||"webkitSpeechGrammarList"in e)}}],d=0;d0){var n=e.speechResult.charAt(e.speechResult.length-1);"."!==n&&"?"!==n&&"。"!==n&&"?"!==n||(e.speechResult=e.speechResult.slice(0,-1))}},o.prototype.sendBeacon=function(n,t){var o=e.YAHOO.ULT||{},i=e.YAHOO.SB||{};if(o.beacon_click){var r={_S:i.config.i13n.spaceid,_I:i.config.i13n.pvid,actn:n,sec:"search",slk:t};e.YAHOO.ULT.beacon_click(r)}},o.prototype.ajaxReq=function(t,o){var i,r,a=XMLHttpRequest.DONE||4,s=new XMLHttpRequest;if(n.documentMode&&n.documentMode<10)return(new e.XDomainRequest).onload=function(){try{r=JSON.parse(i),o(r)}catch(e){return}},s.open("GET",t),void s.send();s.onreadystatechange=function(){if(s.readyState===a)if(200===s.status){i=s.responseText;try{r=JSON.parse(i),o(r)}catch(e){return}}else o(r)},s.open("GET",t,!0),s.timeout=1e4,s.send()},e.YAHOO||(e.YAHOO={}),e.YAHOO.Util||(e.YAHOO.Util={}),e.YAHOO.Util.VoiceSearch=o}(window,document)}();var Wn={containerClass:Un.tooltip,textClass:Un.tooltip__text,showClass:Un["tooltip--show"]},Jn=["zh-hant-tw","zh-hant-hk"];ye("ybar-mod-searchbox",(function(e){var n={ybar:document.getElementById("ybar"),searchInput:document.getElementById("ybar-sbq"),buttonBar:document.querySelector(".".concat(Un["sa-btn-bar"])),voiceSearchBtn:document.getElementById("ybar-sbq-voice"),searchForm:document.getElementById("ybar-sf"),searchBoxIcon:document.querySelector(".".concat(Un["searchbox-icon-uh3"])),searchBoxPlaceholder:document.getElementById("ybar-smartphone-searchbox-placeholder"),searchBoxBackButton:document.getElementById("ybar-search-back-btn"),shopsButtonsWrap:document.querySelector(".".concat(Un["shops-buttons"])),categorySelect:document.getElementById("shops-category-select"),selectedMerchantInput:document.getElementById("selected-merchant-input"),selectedMerchantClearButton:document.querySelector(".".concat(Un["selected-merchant-clear-button"])),submitSearchBtn:document.getElementById("ybar-search"),clearSearchBtn:document.getElementById("ybar-sbq-x")};!function(e,n){var t,o,i,r=e.getConfig();if(n.ybar&&"desktop"===r.device&&(null===(t=r.bucketConfig)||void 0===t?void 0:t.highlight_searchassist)&&(null===(o=r.bucketConfig)||void 0===o?void 0:o.overlay_class)){n.ybar.setAttribute("data-ovrly-bkt",r.bucketConfig.overlay_class),null===(i=n.searchForm)||void 0===i||i.classList.add(Un[r.bucketConfig.overlay_class]);var a=document.createElement("div");a.classList.add(Un.overlay,Un[r.bucketConfig.overlay_class]),document.body.appendChild(a),e.onDestroy((function(){document.body.removeChild(a)})),e.addElementListener(n.searchForm,"focusout",(function(e){if(n.searchForm&&n.searchInput){var t=e.relatedTarget;t&&!n.searchForm.contains(t)&&window.YAHOO.SA&&window.YAHOO.SA.apps&&window.YAHOO.SA.apps[0]&&window.YAHOO.SA.apps[0].view.shown&&window.YAHOO.SA.apps[0].view.hide()}}))}}(e,n),zn(e,n),n.voiceSearchBtn&&function(e,n){var t=e.getConfig(),o=t.locale,i=function(){var e,t;(null===(t=null===(e=window.YAHOO)||void 0===e?void 0:e.Util)||void 0===t?void 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    Should You Invest In High-Yield Bonds Right Now? (2024)

    FAQs

    Should You Invest In High-Yield Bonds Right Now? ›

    Yields are high, but risks remain. With the economy showing signs of slowing down, investors should be aware of the risks that a decline in economic growth, or an outright contraction, could pose to the high-yield bond market. While a near-term recession is not our base case, risks are rising.

    Are high-yield bonds a good investment right now? ›

    High-yield bonds and preferred securities can be considered by long-term investors who can ride out some volatility, but we wouldn't suggest large or overweight positions in either given the low yield advantage they offer relative to high-quality investments. Many preferred securities do offer tax advantages, however.

    Should I be in bonds right now? ›

    “As retirement moves closer, it could make some sense for investors to shift more of their portfolio into bonds as the lower volatility and principal preservation characteristics of the asset class become more valuable in a portfolio context.

    Is it a good time to buy bonds in 2024? ›

    2024 is 'a good time to hold bonds'

    Bond funds tend to lose value when interest rates rise, and when inflation ticks up. “The aggressive nature of those interest rate hikes contributed to the aggressive decline of bond values,” Lee said. Rising interest rates tend to lift rates on new bonds.

    Are high-yield bonds good during recession? ›

    The big deal with high-yield corporate bonds is that when a recession hits, the companies issuing these are the first to go. However, some companies that don't have an investment-grade rating on their bonds are recession-resistant because they boom at such times.

    What is the downside of high yield bonds? ›

    What are the risks? Compared to investment grade corporate and sovereign bonds, high yield bonds are more volatile with higher default risk among underlying issuers. In times of economic stress, defaults may spike, making the asset class more sensitive to the economic outlook than other sectors of the bond market.

    What is the safest high-yield investment right now? ›

    Overview: Best low-risk investments in 2024
    1. High-yield savings accounts. ...
    2. Money market funds. ...
    3. Short-term certificates of deposit. ...
    4. Series I savings bonds. ...
    5. Treasury bills, notes, bonds and TIPS. ...
    6. Corporate bonds. ...
    7. Dividend-paying stocks. ...
    8. Preferred stocks.
    Jul 15, 2024

    Should I buy bonds when interest rates are high? ›

    If you buy bonds toward the end of a period when rates are rising, you can lock in high coupon yields and also enjoy the increase in the market value of your bond once rates start to come down.

    Is it bad time to buy bonds? ›

    But the rise in interest rates has made bonds more attractive than they've been in over a decade. Investors can now earn attractive rates on short-term cash through money market funds, while longer-term bonds present an opportunity to lock in yields in case rates fall.

    What is the I bond rate prediction for 2024? ›

    The September I Bond composite rate is 4.28% (US Treasury) which is 2.14% earned over 6 months. The September 2024 I Bond Fixed Rate is 1.30%. The November 2024 I Bond composite rate is projected to go below 3%!

    What percentage of a portfolio should be in high yield bonds? ›

    Meketa Investment Group recommends that most diversified long-term pools consider allocating to high yield bonds, and if they do so, between five and ten percent of total assets in favorable markets, and maintaining a toehold investment even in adverse environments to permit rapid re-allocation should valuations shift.

    What is the best bond fund to buy now? ›

    9 of the Best Bond ETFs to Buy Now
    ETFExpense ratioYield to maturity
    iShares 0-3 Month Treasury Bond ETF (SGOV)0.09%5.2%
    iShares Broad USD Investment Grade Corporate Bond ETF (USIG)0.04%4.8%
    SPDR Bloomberg High Yield Bond ETF (JNK)0.40%7.4%
    SPDR Bloomberg Emerging Markets Local Bond ETF (EBND)0.30%6.2%
    5 more rows
    Sep 9, 2024

    What is the best fixed-income investment for 2024? ›

    Seven fixed-income investment ideas
    1. Treasuries. The United States government issues Treasury notes, bonds and bills. ...
    2. Treasury Inflation Protected Securities. ...
    3. Municipal bonds. ...
    4. High-yield (junk) bonds. ...
    5. Bond funds. ...
    6. Corporate bonds. ...
    7. Certificates of deposit.
    Jun 25, 2024

    Should I buy high yield bonds now? ›

    Despite the rising risks and low spreads, investors don't need to abandon or avoid high-yield bond investments. Rather, we suggest that investors who are considering high-yield bonds today should understand those risks and have a more long-term investing time horizon to ride out the potential ups and downs.

    Do bonds do OK in a recession? ›

    The short answer is bonds tend to be less volatile than stocks and often perform better during recessions than other financial assets.

    Are bonds safe if the market crashes? ›

    Bonds usually go up in value when the stock market crashes, but not all the time. The bonds that do best in a market crash are government bonds such as U.S. Treasuries. Riskier bonds like junk bonds and high-yield credit do not fare as well.

    What happens to high yield bonds when interest rates go up? ›

    Bonds have an inverse relationship to interest rates. When interest rates rise, bond prices usually fall, and vice-versa. To those unfamiliar with bond trading, the negative correlation between interest rates and bond prices may be counterintuitive.

    What bonds have a 10 percent return? ›

    Junk Bonds

    Junk bonds are high-yield corporate bonds issued by companies with lower credit ratings. Because of their higher risk of default, they offer higher interest rates, potentially providing returns over 10%. During economic growth periods, the risk of default decreases, making junk bonds particularly attractive.

    Is it good to buy bonds when interest rates are falling? ›

    Because bond prices typically rise when interest rates fall, the best way to earn a high total return from a bond or bond fund is to buy it when interest rates are high but about to come down.

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