It wasn't so long ago that high yield bonds, also known as "junk bonds," had a reputation that no conservative investor would go near. However, times have changed.
The high-yield market has grown into a more stable and more mature asset class with an attractive risk/reward profile.
The Value Line Aggressive Income Trust seeks maximum current income through investment in these high yielding, lower rated, fixed income corporate securities.
To qualify a security for the Value Line Aggressive Income Trust, it must meet certain relative financial strength criteria we have established, including measures of financial leverage, business risk, and company size. And because lower-rated fixed income securities involve greater risk than investment grade securities, we also look very closely at what can go wrong. We spend a lot of time researching the variables that can not be quantified.
Lower-rated securities have certain speculative characteristics and involve greater investment risk, including the risk of default, than high-rated securities. Such securities may be subject to greater market fluctuations and risks of loss of income and principal than lower yielding, higher rated fixed-income securities. Investors should carefully consider these risks prior to investing.
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The Value Line Aggressive Income Trust managers make investment decisions using data contained in the Standard and Expanded Editions of The Value Line Investment Survey.
The Trust invests primarily in securities issued by companies that are rated B++ or lower for relative financial strength in the Standard and Expanded Editions of The Value Line Investment Survey and will not normally purchase securities issued by companies rated C, the lowest rating. These ratings are based on a computer analysis of a number of key variables as well as the judgment of experienced analysts regarding certain intangibles that can not be standardized across the board for all companies. The Trust may also invest in securities of companies not followed by the Investment Survey if we believe that the financial condition of the issuers or the protection afforded by the terms of the securities themselves limit the Trust's risk to a degree comparable to those with the Value Line financial strength ratings. The Trust is well diversified across economic and industry sectors.
