If we assume that FED hikes the interest rates next time, then we will expect bond prices in general to fall, but what types of bond do you expect to be affected the most? Corporate bonds or government bonds?
Is it wrong to assume, that when the economy is going well (high PMI, high GDP growth rates and so on), then the prices/returns from High Yield bonds will be higher than investment grade bonds? and in general corporate bond return will be higher than government bonds?
Am I totally wrong? I will say that riskier bonds will perform better, when economy goes well, but worst when economy goes bad?
I hope these are not silly questions