Analysis: Investors' appetite for high-yield credit bonds remains strong

"I believe that the relatively high interest rates on high-yield corporate bonds are not necessarily negative," said the head of the high-yield strategy group. "Obviously, the rise is painful, but most high-yield buyers are actually yield buyers, not necessarily spread buyers. Investors focus on the overall yield, which is currently above 7% for U.S. high-yield bonds, rather than just the credit spread," he said. He further noted that most high-yield buyers take the overall yield into account when deciding whether to invest.