Saturday, July 28, 2012 - 5:09 AM

Safety Of Short-Term High-Yield Bond Funds?

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.

KenBDG5,138 posts since
Nov 29, 2009
Rep Points: 116,957

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.

Shorebreak1,281 posts since
Apr 6, 2010
Rep Points: 4,785