Issues to consider when investing in high yield products
~ Why is the investment high yield — where does this additional yield come from?
~ What are the main risks associated with the investment?
~ What is the risk profile attached to the different high yield instruments, and is the investment considered growth or defensive?
~ Should you make specific allocations to high yield investments, or invest in a diversified fixed income product and leave the manager to decide on the allocation to high yield?
~ What signals are relevant when considering making an allocation or increasing your allocation to high yield investments?
~ If considering a particular bond issue, ask about the price and expected yield; the maturity date, and if the bond can be redeemed early; the credit rating, and what this means for risk; and the price.
Source: Mercer Wealth Solutions
Recommended for you
In this week’s episode of Relative Return Unplugged, Dr Vladimir Tyazhelnikov from the University of Sydney’s School of Economics joins the show to break down the shifting sands of global trade dynamics and attempt to understand the way US President Donald Trump is employing tariffs.
In this week’s special episode of Relative Return Unplugged, we present shadow treasurer Angus Taylor’s address at Momentum Media’s Election 2025 event, followed by a Q&A covering the Coalition’s plans for the financial services sector.
In this week’s episode of Relative Return Unplugged, AMP chief economist Shane Oliver joins the show to unravel the web of tariffs that US President Donald Trump launched on trading partners and take a look at the way global economies are likely to be impacted.
In this episode of Relative Return, host Laura Dew is joined by Andrew Lockhart, managing partner at Metrics Credit Partners, to discuss the attraction of real estate debt and why it can be a compelling option for portfolio diversification.
