The Federal Reserve (Fed) reintroduced interest rate risk in the bond market last week. Corporate bonds, particularly lower-rated high-yield bonds, weathered the rise in rates better than most sectors. Bond prices overall are generally higher so far in 2014, and high-yield bonds remain expensive relative to history, but that does not mean that the sector cannot still offer value for investors. Credit quality is generally good, funding conditions are favorable, and defaults may remain low — all of which support higher-than-average valuations. High-yield bond valuations must also be taken in the context of a bond market with limited opportunities. High-yield bonds and lower-rated debt may still offer attractive opportunities in the bond market….