The headwinds of rising high-quality bond
yields and increasing new issuance have
slowed the advance of high-yield bonds in late
October 2014, relative to stock market gains.
Nonetheless, we expect high-yield bonds may
improve as economic expansion, earnings
growth, and low defaults continue to drive our
We continue to expect a challenging, lowreturn
environment across the bond market,
with high-yield bonds a likely bright spot.