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Ned Davis: With High-Yield Play, Consider Shorter Duration Funds

FYI; Earlier this month, Ned Davis upgraded high-yield bonds to an Overweight from a Marketweight. In a recent report, analyst Joe Kalish argued that spreads had become favorable and support owning higher-yielding bonds.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2014/10/21/ned-davis-with-high-yield-in-play-consider-shorter-duration-funds/tab/print/

Comments

  • Hi all,

    In review of my income sleeve within my portfolio which consist of the following funds ... EVBAX, LALDX, LBNDX, NEFZX, THIFX and TSIAX ... it appears the managers have now lowered their duration and the sleeve currently has a duration reading of 3.4 years. In addition, its yield is 3.6% and thus far it has had a total return of 4.3% ytd.

    It appears that the manages are doing their job in managing interest rate risk while at the same time providing a good income stream with a yield of about 3.6 percent along with a decent total return at 4.3% thus far this year.

    Score me, a happy camper.

    Old_Skeet
  • @Old_Skeet,

    I also have noticed the same with the bond funds I own. Managers are getting ready for the inevitable. It's good to see.
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