High-yield debt outperforms

asset class could outstrip investment-grade bonds for the next decade if history repeats itself

High-yield debt could continue to outperform investment-grade bonds for the rest of this decade if recent history repeats itself. Jim Leaviss, head of fixed interest at M&G Investments, said the last time high-yield delivered such strong double-digit returns as those seen in the past 12 months, the asset class went on to outperform in six of the eight subsequent years. "Although high yield has had a strong run, yield spreads over government bonds are still only at the long-term average," he added. "If we see a repeat of the 1991 experience, we will have this great year, followed by six o...