High-yield debt of riskier companies is not as junky as investors believe. So these bonds have sold off too much. Consider finding a place for them in your investment portfolio: Junk bonds are now a source of decent dividend yield and potential capital appreciation – and a compelling contrarian play.
“I’ve been doing this a long time, and I think now is a very attractive time to enter the asset class,” T. Rowe Price US High Yield fund TUHYX manager Kevin Loome told me in a recent interview. Because of widespread fears of recession…