Investing in high inflation: What investors should consider

Frankfurt High-yield bonds are slowly living up to their name again: on average, the bonds of European companies with poor credit ratings are paying six and a half percent. High-yield bonds from US companies even yield an average of eight percent. This makes them an alternative for investors in an environment of high inflation.

But given their higher risk, are these bonds the right investment in these troubled times? The experts at the US fund company T. Rowe Price agree. High yield bonds are cheap by historical standards “and a compelling buying opportunity for investors looking for consistent income in today’s uncertain markets.” There are opportunities here especially for newcomers.

But if you want to get in, you shouldn’t do so without any knowledge. In the following, the Handelsblatt explains what investors should look out for in high-yield bonds and how they can invest, what type of investor investments might be suitable for and in which sectors or specifically which companies analysts see opportunities – or risks.