Citi: High-Yield Bonds Riskier Than Expected

Citigroup analysts stated that high-yield bonds may be riskier than market participants think. The analysis indicates that the fundamental risk metrics of this asset class need to be reassessed. Experts emphasize that investors should review their traditional assumptions regarding the credit quality and liquidity risk of these bonds. In the current economic environment, it is anticipated that the volatility of high-yield debt instruments could increase and spreads could widen. This situation necessitates portfolio managers to review their risk management strategies. Not investment advice.