Faculty Publications

Title

Should You Be Shopping for Junk Bonds in This Market?

Document Type

Article

Publication Date

1-7-2016

Abstract

Given that interest rates are likely to rise further, and that junk bond valuations have declined over the last year and a half, investors may want to shop for a little junk to add to their portfolios.

The last few weeks have seen the high-yield bond market in the news for all of the wrong reasons. Third Avenue Focused Credit Fund -- a mutual fund that specialized in investing in high-yielding loans and securities issued by struggling companies -- halted redemptions.