SectorsAfter a painful adjustment to higher interest rates in 2022, there are whispers that bonds may be back. It is a natural home for higher yield bonds or loans, for example, where there is less liquidity. While high yield bonds are less sensitive to rate rises than government bonds or investment grade corporate bonds, there is still a relationship and it could push yields higher (and prices lower). While high yield bonds tend to have less exposure to interest rates than other parts of the fixed income market, they are not immune. US high yield bonds trade at around 4% higher than US treasuries.

Source: The Guardian February 10, 2023 10:07 UTC