While double-digit yields were typical in the 1980s, the current market landscape has made yields of 10% or higher increasingly elusive. However, investors can still find opportunities for double-digit yields through certain ETFs, CEFs, and individual stocks, which present significantly lower risk compared to junk bonds from the 1980s. The article cites the role of professional fund management in mitigating risks for investors in high-yield bond portfolios, as well as the historical context of high-yield bonds during the leveraged buyout boom driven by firms like Drexel Burnham Lambert.
Although double-digit yields were normal during the 1980s, lower interest rates and a robust stock market have rendered yields of 10% or higher obscure.
ETFs holding large high-yield bond portfolios give investors the benefit of professional fund management to mitigate any commensurate risks that individual bond holders might face.
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