The trouble with high yield credit - why investors should be wary... Vimal Gor, Head of Income & Fixed Interest, BT Investment Management As central banks globally turn towards quantitative easing programs, it's a hard market for income with interest rates at record lows. Focus in the income world is shifting to high yield credit, but investors should be wary - cheap returns may be too good to last. High yield credit is returning 4.9% - over three times the return of the 5-year US Treasury bond at 1.6%. Spreads of 3.3% are tighter than even the most heady credit environment ever, which was less than the 4% in 2006. Worrying? Maybe. While you could say this is cheap - for high yield credit to remain attractive, remember interest rates have to stay at zero for at least your investment horizon. Read more commentary here (VIEW LINK)