First Trust: Passive Investing 'Flawed' For Senior Loans, High Yield

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First Trust: Passive Investing 'Flawed' For Senior Loans, High Yield

Moreover, index-based approaches to investing in senior loans and high yield bonds may expose investors to credit risk for which they are not being adequately compensated. For example, from 1920-2011, the average annual default rate for BB and B rated
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