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7 Best High-Yield Bond Funds

Corporate bond funds can be separated into two distinct categories: investment grade and below investment grade. The former generally have a credit rating of BBB or higher but have lower yields. The latter have much higher yields but take on greater default risk with lower credit ratings. They’re commonly called high-yield, or “junk,” bonds.

Compared to investment-grade corporate bonds, Treasury bonds and municipal bonds, high-yield bonds often have a higher correlation with the stock market. When markets crash, high-yield bonds often tumble too as the creditworthiness of their issuers becomes a concern. That being said, they can offer enticingly high income, especially as bond yields continue their upward march.

Here are seven of the best high-yield bond funds in 2022.

This post originally appeared at U.S. News & World Report.