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A bond portfolio.
A bond portfolio.
(Photos.com)

Canada's high-yield market takes it on chin in June

A stronger economy is theoretically good for highly indebted companies because it helps them pay their debt.

That’s what high yield bond bulls will tell you when they argue that junk bonds should be a haven in a rising rate environment. A better economy means less credit risk and that should buoy bonds issued by companies with weak balance sheets.