Held at bay through the March banking crisis, US high-yield bond issuers switched on the supply valve in April, generating $18.4 billion, a 22% increase from March. Despite the market volatility caused by the COVID-19 pandemic, the high-yield bond market has been able to remain somewhat stable. However, global investors have resumed their selling of high-yield corporate bonds after a brief respite in January, with outflows reaching $1.6 billion in the week ending March 11, the largest in four weeks.
Rising interest rates are making shorter-duration, high-yielding junk bonds particularly attractive for income investors. BlackRock Floating Rate Income Strategies Fund Inc invests in floating-rate debt securities offering rate protection. The fund's investment objectives are to provide high current income and to preserve capital. The fund's portfolio includes securities from a variety of industries, including banking, healthcare, and technology.
Our guide to finding the best opportunities for high yields in nine categories — from super-safe options to higher-risk choices with big returns. The guide provides insight into the different types of high-yield bonds and the risk and benefits associated with each. It covers topics such as municipal bonds, corporate bonds, emerging market debt, and more.