FYI: High-yield bonds outperformed investment-grade debt in the first two months of this year—and are now so expensive that Martin Fridson, chief investment officer at Lehmann, Livian, Fridson Advisors, says that investors should shift their cash into higher-quality bonds.
The back story. After a steep selloff put a deep freeze on high-yield bond issuance at the end of last year, the market has rebounded. The high-yield bond market posted a 6.4% total return in the first two months of the year, and the iShares iBoxx $ High Yield Corporate Bond exchange-traded fund (HYG) is up 5.2% so far in 2019.
Regards,
Ted
https://www.barrons.com/articles/investors-should-favor-investment-grade-bonds-over-high-yield-51551890872?refsec=bonds
