High yield may be wobbly, but are there real alternatives?

After strong moves in high yield over the last six years, investors would be right to re-evaluate holdings. But are there any compelling alternatives? Russell Investments' James Mitchell explores.

The high yield market has experienced a bit of a wobble recently as investor concerns have been fuelled by comments about market frothiness from Federal Reserve chairman, Janet Yellen, ongoing tensions in Ukraine and the Middle East, and fears about an economic slowdown in China. Bulls versus bears The yield on the US high yield market has climbed above 6%, having hit a record low of 4.8% in the summer. The bears would argue this level of yield still offers little cushioning given some signs of late cycle behaviour - increasing company leverage and poorer quality issuance - and the...