With all of the bad news and negative sentiment surrounding the high yield bond market, I think this is a place where we want to be buyers, and no longer sellers. High yield bonds are just a fancy way to refer to “Junk bonds”. At the end of the day, high yield is just that: high yield, because you’re getting paid a higher return for the risk you’re taking by owning junk. Both on their own and relative to the safe-haven U.S. Treasury Bonds, these things have been destroyed over the last few years.
Moving forward, we want to be aggressively buying Junk Bonds.
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