High-Yield Bonds: Call Waiting

http://ift.tt/VlEo2q High-yield bonds’ attractive income has made them popular in today’s low-rate environment. But market complacency has caused callable-bond investors to ignore a lurking risk: duration extension in a rising-rate scenario. The vast majority of high-yield (also known as noninvestment-grade) bonds are callable. At any point after a predetermined number of years following a bond’s issuance, […]

via AllianceBernstein Blog http://ift.tt/12najyx