Distressed bond investing has at times been a fruitful strategy over the past five to seven years, but recent numbers suggest it’s heading into a rough patch, according to Bloomberg.

Read: Consider distressed bonds for returns

Not since 2008 have distressed U.S. bonds seen worse performance. “The notes have plunged 7.5% so far this year and 3.2% this month alone, with some of the biggest losers being the debt of Lightstream Resources Ltd., Peabody Energy Corp. and Cliffs Natural Resources Inc., according to Bank of America Merill Lynch index data,” explains the Bloomberg report.

Read more here.

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Why companies issue high-yield bonds

Are high-yield bonds still junk?

Originally published on Advisor.ca

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