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Credit Insights

Reaching for Yield

In the quest for absolute yield, individual investors have been increasingly reaching down the credit-quality spectrum.

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In September, investors continued to pour money into fixed-income mutual funds as equity funds bled cash.

As we see investors shift their asset allocation toward fixed-income products, we have also seen an increasing amount of individual investors buying high-yield and foreign-issuer bonds. In the quest for absolute yield, as opposed to relative value spreads, individual investors have been increasingly reaching down the credit-quality spectrum.

David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.