Top 10 US High-Yield Corporate Bonds With Returns Over 20% In April 2024
Portfolio Pulse from Piero Cingari
U.S. high-yield corporate bonds are attracting investors with returns over 20% as interest rates remain high. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has seen a 10% increase since October 2023. High-yield bonds, also known as junk bonds, are issued by companies with lower credit ratings and come with higher risks. The top 10 high-yielding bonds as of April 2024 include issues from AMC Entertainment Holdings (AMC), Hughes Satellite Systems Corp. (SATS), Dish Network Corporation, Lumen Technologies Inc. (LUMN), and Office Properties Income Trust (OPI).
April 04, 2024 | 6:59 pm
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NEUTRAL IMPACT
AMC Entertainment Holdings has several high-yield bonds listed among the top 10, with yields ranging from 25.06% to 34.19%, indicating a speculative grade.
While AMC's bonds offer high returns, their speculative grade reflects significant risk. The short-term impact on AMC's stock may be neutral as bond performance does not directly correlate with stock performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Lumen Technologies Inc. (LUMN) has a high-yield bond with a 30.71% yield, classified as speculative grade.
LUMN's high-yield bond offers significant returns but carries high risk. The bond's performance may not directly affect LUMN's stock in the short term.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Office Properties Income Trust (OPI) has multiple high-yield bonds listed, with yields up to 30.45%, indicating a speculative investment grade.
OPI's presence in the high-yield bond market with multiple entries suggests a high-risk profile. The impact on OPI's stock is neutral in the short term, as bond performance does not directly correlate with stock performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Hughes Satellite Systems Corp., owned by Echostar Corp. (SATS), has a high-yield bond with a 33.81% yield, indicating speculative investment.
SATS's bond yield is attractive but comes with high risk. The direct impact on SATS's stock is uncertain, as bond and stock performances can diverge.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has increased by 10% since October 2023, indicating a positive trend in the high-yield bond market.
The positive performance of HYG suggests a growing investor interest in high-yield bonds, potentially leading to further gains in the short term as the market anticipates interest rate cuts.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80