JMF Capstone Wealth ManagementHigh Yield Rewards Underwhelming – JMF Capstone Wealth Management https://www.jmfcapstone.com An Alabama registered investment advisor Fri, 21 Nov 2025 19:30:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 High Yield Rewards Underwhelming https://www.jmfcapstone.com/2016/01/11/high-yield-rewards-underwhelming/ https://www.jmfcapstone.com/2016/01/11/high-yield-rewards-underwhelming/#respond Mon, 11 Jan 2016 09:00:40 +0000 http://evolvemypractice.com/?p=2520 Investors have now been faced with a long period of very low yields on high-quality bonds. As a result, and as a consequence of the Federal Reserve’s easy monetary policy, many investors have chosen to pursue higher yields by taking credit risk. This has occurred despite historical evidence that only a very small default premium...

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]]> Investors have now been faced with a long period of very low yields on high-quality bonds. As a result, and as a consequence of the Federal Reserve’s easy monetary policy, many investors have chosen to pursue higher yields by taking credit risk. This has occurred despite historical evidence that only a very small default premium has existed. What’s more, this premium has been small even before considering transaction costs.

My colleague and co-author, Kevin Grogan, recently took another look at high-yield bonds and shows once again that investors have not been well rewarded.

Read the rest of the article on ETF.com.

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