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By Ben Pakenham, Portfolio Manager European High Yield, Aberdeen Asset Management *
Why should people consider investing in high yield?
Well, despite showing limited capital appreciation potential at the moment, we think that the asset class is attractive for many different reasons.
Firstly, income is likely to be the main source of return for high yield investors and the income return available within the high yield universe still compares favourably to other fixed income asset classes. High yield bonds currently offer a yield of around 5.6%, which is low by historical standards, but far exceeds the 2.2% available from investment grade bonds or negative real yield German bunds provide.
Secondly, macro concerns are...
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