Bonds: Consider holding high-yield corporate bonds – Charles Schwab

Given their more attractive valuations, analysts at Charles Schwab have updated the outlook on high-yield bonds.

Key quotes

“We believe prices may fall further due to the deteriorating economic outlook, but we never try to time the market and call the bottom.”

“Holding some high-yield corporate bonds today can help provide higher income payments, but be prepared to ride out the potential ups and downs of the market in the near-term.”

“The high-yield bond market tends to be illiquid by nature, so given the risks and the high level of volatility, keep in mind that the size of an investment matters.”