Western Asset High Income Opportunity Fund boasts a 10.52% yield but faces risks. Learn why HIO's recent NAV drop makes it a ...

What happened next? Treasury yields plunged while junk yields soared. The chart below plots the junk-bond spread over the past three decades. Not only do you have to go back to 2007 to find the ...

That means corporate bond prices fall, so corporate bond yields rise. High-yield (junk) bonds have the highest default risk, and default expectations have more influence on their prices.

Highlights,Bonds with speculative credit ratings of BB (S&P) or Ba (Moody’s) or lower.,Offer higher yields to compensate for ...

But Fridson calls that “grasping at straws” and notes that the high-yield bond market “sports a risk premium grossly inadequate for its current risk.” US junk spreads widened earlier this ...