Four Reasons Why Junk Bonds Might Be Worth Buying

Some analysts are predicting positive returns for junk bonds this year after a dismal performance in 2022

The Federal Reserve’s rate increases damaged junk bonds. Some analysts say this year will surely be better.Photo: Leah Millis/REUTERS

High-yield bonds took a beating in 2022 as the Federal Reserve raised interest rates to tame inflation. But some analysts say the outlook for these securities is brighter this year.

“I always like being in high-yield after it has had a year of negative returns,” says Peter Tchir, head of global macro at New York-based Academy Securities.

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