Financial Planner Warns of Risks in High-Yield Bond Investing
1 report, 1 independent
Updated Fri 00:00
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What happened
With 10-year Treasury yields reaching multidecade highs, some investors are moving cash into fixed income products like 2-year Treasurys and target-maturity bond funds. James Mayo, a financial planner at IronFjord Wealth Management in Lakewood, Colo., observed that new clients are investing in high-yield funds without understanding that these are speculative grade bonds with low credit quality.
From hindustantimes.com
Why it matters
The rising yields on safer bonds are making fixed income more attractive, but the trend toward high-yield funds highlights the risk of investors prioritizing high returns over the credit quality of the bond issuers. These bonds carry a higher risk of default.
From hindustantimes.com
Who's involved
- MayoFinancial planner at IronFjord Wealth Management in Lakewood, Colo.