Although all bonds to one degree or another are affected by interest-rate movements, the high-yield market tends to be less sensitive to potential rate increases.
What are the potential benefits?
Incremental yield (spread) over Treasury and high-quality corporate bonds
Default rates of issuing companies tend to be lower during improving economic conditions when rates rise
Attractive relative returns potential
What does Federated offer in this category?
- High Income Bond Fund, Inc.
- High Yield Trust
- Institutional High Yield Bond Fund
- Municipal High Yield Advantage Fund