I've been doing some research on short term high yield bonds during raising interest rates. A couple things that I have read:
- High yield bonds seem to follow the market more than the bond market
- High yield bonds do okay in slow raising rates since it means the economy is growing, companies less likely to default on their bonds
- If the market dips, they usually go down with it
What is everyone's opinions on these and the long term bonds at this time? It seems like if a person were to put money in junk bonds, they might as well put it in SPY since it tends to follow the market.
FYI the etf I was looking at was $SJNK. It produces about a 5% yield.
Submitted March 04, 2017 at 11:21AM by kliv555 http://ift.tt/2lKeOCE
