4 Great Mutual Funds to Earn 3% to 6% in High-Yield Bonds

A sense that the economic good times can't run on forever has pushed up yields.

Income-hungry investors have long favored high-yield "junk" bonds for the most speculative chunk of their portfolios. Junk securities are any bonds issued by below-investment-grade companies. Because they pose a greater risk of default than high-quality bonds, junk issues must yield more to attract buyers. Lately, junk yields have been pushed higher as investors weigh risk against reward in an aging economic cycle. The average junk-bond yield has risen from a low of 5.4% in 2017 to 6.1% recently, compared with the 3%-to-4% yields of high-quality bonds.

Earnings for All

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Tom Petruno
Contributing Writer, Kiplinger's Personal Finance
Petruno, a former financial columnist for the Los Angeles Times, is an independent investor, writer and consultant. He lives in L.A.