A common misconception about bonds is that they are a sleepy, low-return investment vehicle.
Nothing could be further from the truth. Despite this generalization, there are many products — such as high-yield, or junk, bonds and emerging markets bonds — that offer higher returns than the traditional core fixed-income products, like Treasurys, investment-grade corporates and municipals. These bond products have grown into legitimate and mature asset classes worthy of inclusion in many portfolios. Of course, these products come with greater risk than the core products.