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Safety Of Short-Term High-Yield Bond Funds?

Saturday, July 28, 2012 - 5:09 AM
From the Wall Street Journal:
With interest rates near record lows, investors looking for meaningful yields are piling into high-yield "junk" bonds.

The problem? Junk bonds are notoriously volatile, and the selloffs can be nasty. One solution for investors with weaker stomachs: short-term funds.

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1
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Saturday, July 28, 2012 - 6:42 AM
"To reduce the risks of a large drop in high-yield bonds, investors might consider an actively managed mutual fund instead, experts say. Such funds tend to do a better job of reducing the price swings in the asset class because managers can reduce the exposure to the riskier bonds."

No thanks.
2
ShorebreakShorebreak2,692 posts since
Apr 6, 2010
Rep Points: 14,598
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