Despite recent un-volatility, there are lots of stresses in the market - yet no shortage of...

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Uncle Pie Comments (1576)
 
whenever they tell you are in a "sweet spot" or a "win-win" situation, run away as fast as you can!
18 Aug 2012, 09:51 AM Reply Like

MexCom Comments (2796)
 
Trouble with the hi-yield plays is that they all seem to use leverage to keep the yields high. Its a borrow short lend long game. The short end of the market will come to an end in about a year - more certainly by the end of 2014. This will squeeze the spread. This along with new issuance for the funds' buy targets are coming down in yield from competition from similar funds and lower rates on the long end from lower credit worthy issuers. JNK is a huge fund but there are situations that yield higher. My favorite right now is DHF.

DHF got hit with a SA article that tagged it at an underachiever on August 10. They previously cut their payout to place them in line with other similar funds. I added in hopes of a rebound from the sell-off that has since stabilized. While I wait, as the highest yielder of the hi-yield bond funds that I own - its giving me the best yield/payout monthly.
18 Aug 2012, 11:42 AM Reply Like

Okatie Jack Comments (76)
 
HYG offers good return and is benefiting from S&P and other upgrades.
18 Aug 2012, 02:58 PM Reply Like