What Investors Are Missing in Junk Bonds

In years past, if investors wanted to buy junk bonds, they bought U.S. high-yield corporate bonds: there was pretty much no alternative. The high-yield world is now full of companies from fast-growing parts of the world, yet many investors are missing out.

Take the ICE BofAML Global High Yield index. At the start of 1998, it contained bonds from companies in just 15 geographies, with the U.S. accounting for 87% of the index, notes fund manager Hermes Investment Management.