As U.S. interest rates continue to hover at their highest level in over two decades, investors are increasingly drawn to the realm of high-yield corporate bonds, seeking both lucrative returns and a diversification from stocks.
The U.S. high-yield corporate bond market, as tracked by theiShares iBoxx $ High Yield Corporate Bond ETF(NYSE:HYG), has exhibited positive performance of late, surging by 10% from the depths seen in October 2023.
It's important to remember that when it comes to bonds, rates and prices move in opposite directions, meaning that as rates increase, prices decrease and vice versa.
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