Why investors should beware big overseas bond yields

Dollar-denominated bonds have not had the best of times recently, writes Mateusz Malek, head of bonds research at Killik & Co.

With the US Federal Reserve still travelling along an interest rate hiking path, the threat of a 'twin deficit' looming over US Treasuries and the general widening in corporate spreads experienced this year, the average yield-to-maturity on US, investment-grade corporate bonds has climbed to more than 4%, according to the Bloomberg Barclays US Corporate Bond index. This is a rise of nearly one percentage point from a year ago and the highest level since early 2011.  Andrew Harman: Why our exposure to equities and corporate credit is at an all-time low Given that the average yield-t...