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FYI: Two funds, AllianzGI Convertible & Income (NCV), and AllianzGI Convertible & Income II (NCZ), have been under pressure lately. Why do they have such a high yield? Do they use leverage and are they risky? And are they more attractive now that they’ve fallen in price? These closed-end funds have yields of close to 12% because they borrow money to buy lower rated bonds and convertible bonds, advisers say. As such, they’re a bet on riskier companies. The bet likely will pay off if the economy remains firm, but could be a mistake if there is a slowdown Regards, Ted http://online.wsj.com/articles/know-the-risks-with-these-two-high-yield-closed-end-bond-funds-1415569547
