High-yield, or junk bonds, are the best performing sector in U.S. fixed-income in the year so far, chalking up a total return of 3.8%, according to the Bank of America Merrill Lynch Global Index System. That compares with 1.7% for investment grade and 1.3% for Treasuries. In April, the high-yield sector had a total return of 1.2%, while investment grade had a negative return of 0.5% and Treasuries a negative return of 0.4%. As of Thursday, high-yield was offering an extra 459 basis point-spread over Treasuries, according to Bank of America Merrill Lynch.
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