High-Yield Bond Mutual Funds: Performance, January Effects, and Other Surprises

Journal of Fixed Income, Fall 1997

Posted: 4 May 1998

Abstract

Here is insight into the investment performance of low-grade light-yield corporate bond mutual funds during 1980 - 1995, which includes the period the high-yield market was recovering from weak performance. There is evidence that low-grade bond mutual funds have both superior and inferior managers and that their portfolio systematic risk is considerably below a commonly used high-yield index.. Total risk for the average high-yield fund exceeds the total risk of the high-yield index, and is not compensated by extra returns. The results also indicate that a January effect holds for high-yield bond funds as well as low-grade bonds, which appears to extend as well to a "first six months" effect.

JEL Classification: G12, G14

Suggested Citation

Gudikunst, Arthur C. and McCarthy, Joseph, High-Yield Bond Mutual Funds: Performance, January Effects, and Other Surprises. Journal of Fixed Income, Fall 1997. Available at SSRN: https://ssrn.com/abstract=82988

Arthur C. Gudikunst (Contact Author)

Luter School of Business ( email )

Christopher Newport University
1 University Place
Newport News, VA 23606
United States
757-594-7265 (Phone)

Joseph McCarthy

Bryant University ( email )

1150 Douglas Pike
Smithfield, RI 02917-1284
United States
401-232-6446 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
1,843
PlumX Metrics