High yield bonds are no longer rewarding duration and credit risk correctly, argued RWC Partners’ Justin Craib-Cox, and investors should consider using convertible bonds to earn equity-like returns as volatility continues to affect markets.

Following an initial widening, high yield bond spreads quickly tightened in the wake of the initial coronavirus crisis, despite signs that economies have a long way to go and there may be more stress to follow.

With high yield bonds offering under-appreciated risks in the current environment, investors should look elsewhere for debt that ...