Passive Income Through Investing in High-Yield Bonds

 Passive Income Through Investing in High-Yield Bonds

Passive income can be generated through investing in high-yield bonds, also known as "junk bonds

Passive income can be generated through investing in high-yield bonds, also known as "junk bonds." These are bonds issued by companies with lower credit ratings, and as a result, they offer higher interest rates than investment-grade bonds. The higher interest rates compensate investors for the increased risk of default.

For example

For example, a company with a lower credit rating may offer a bond with a yield of 8%, while a company with a higher credit rating may only offer a bond with a yield of 3%.

However, investing in high-yield bonds carries a higher risk of default and bondholders may lose some or all of their investment. It's important to do thorough research and consult with a financial advisor before investing in high-yield bonds.

Some examples of high-yield bond funds are:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
• VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)
• Fidelity High Income Fund (SPHIX)

Please note that these are just examples and you should consult with your financial advisor before investing.