High-yield bond investors may miss out on sound opportunities if they avoid leveraged buyouts that pay hefty dividends to private equity sponsors on a matter of principle or for fear the company may become distressed, according to new research.

Analysts at FridsonVision, a US specialist high-yield and distressed debt research firm, said their findings contradict a common assumption among high-yield investors that bonds and loans associated with LBOs that pay dividends to their sponsors carry greater risk.