Investors looking for income should be well-rewarded this year, once again, buying high-yield bonds, according to State Street.
He's predicting high-yield bonds will again be one of the top-performing fixed-income sectors in 2024.
High-yield bonds currently have spreads of 3.43 percentage points relative to Treasurys, according to the ICE BofA US High Yield Index Option-Adjusted Spread .
Of course, investors should understand that high-yield bonds carry more risk than investment-grade debt.
"They should be balancing the quality characteristics of high-yield bonds relative to the yield that those bonds are providing," he said.
Persons:
Michael Arone, Arone
Organizations:
Bloomberg, Federal, ICE, CNBC
Locations:
United States