After all, high-yield - a k a junk - bonds pay higher yields for a reason.
They are paying higher yields to customers maintaining more than one type of account at the same institution.
By ignoring the fact capital was vanishing, the fund was able to pay yields of more than 7 percent a year.
He suggests digging a bit deeper, to make sure that a fund can keep paying attractive yields.
Stocks that now pay high yields may not turn out to be good investments, she said.
They pay bond-like yields, but their returns increase when rates rise.
Without what amounts to a call option on their common stock, their securities would have to pay higher yields to attract capital.
The bonds are rated lower than the investment-grade issues of blue-chip firms, and thus pay higher yields.
Lower interest rates generally weaken a currency as traders look for countries where currencies pay higher yields.
A result is that long-term bonds are back to paying higher yields than short-term debt, which is the way things usually work.