Go to the Globe and Mail homepage

Jump to main navigationJump to main content


Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

Why buying stocks may be wiser than holding high-yield bonds Add to ...

Subscribers Only

Years from now, we’ll tally up all the ways this extended period of low interest rates has warped the investing experience.

One to add to this list is the minor mania surrounding high yield bonds. Get this: high-yield bond ETFs currently have yields in the low 4 per cent range. For this modest return by historical standards, investors are expected to invest in companies that are financially too frail to qualify for the investment-grade credit rating that says your interest payments and return of principal on maturity are basically secure.

Report Typo/Error

Follow on Twitter: @rcarrick

Next story


For Globe Unlimited Subscribers

Business videos »

Most popular videos »


Most Popular Stories