From junk to funk

Article Abstract:

High-income bonds account for much investment in British individual savings accounts (Isas). The British and US governments are borrowing less, and demand for long bonds is high, so long bond yields for government bonds are lower than short-term bond yields. Investors are moving to other types of bonds. Meanwhile, the European single currency, and changes in the European banking industry have affected the European bond market. The European high-yield debt market is growing, and retail investors are seeking income due to low inflation and interest rates.

Public & Private Bonds

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High-income bonds carry a price

Article Abstract:

Investors in high-income bonds should be wary since there is a risk that capital may be eroded. The UK investment ombudsman, Richard Youard, has criticized these products since the equity investment has to perform well to protect capital. Investors should take the impact of inflation into account. Some investors have suffered losses since insurance companies expected higher growth than has been the case. These products have sometimes been sold as involving little risk, and some companies have been told to pay compensation because of this description.

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Debt by default

Article Abstract:

There has been a rise in corporate bond defaults, the implications of which are examined in detail.

Bonds, Bonds (Securities)

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