High-Yield Bonds

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?