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Junk bonds

edited March 2012 in Fund Discussions
Looking for the best no load junk bonds both domestic, and global to prepare for rising interest rates
prinx

Comments

  • beebee
    edited March 2012
    A screening ( no fee/no load, under 1.0 ER, M* rank 2-5 star, $3k or less min, SEC yield >4%) at USAA brokerage provided this list:

    TRowe Price is listed as an advisor share (ER.98) here but, is also available as PRHYX (ER.78)

    image

    Also, Zack's rankings of High Yield:
    http://finance.yahoo.com/news/zacks-1-ranked-high-yield-202423901.html

    Comment:
    As I chart a few of these funds together using M* chart tool it seems holding a combination of these funds would smooth out periodic under performance to some degree.
  • Hi Prinx

    For expenses, it’s tough to beat Vanguard HY – VWEHX. In addition, MWHYX (Met West HY) is well managed and pays a nice yield. If you want a little stock with your high yield, then FAGIX (Fidelity Capital & Income) is a good choice. AllianceBernstein High Income Advisor, AGDYX, has a little more global reach and has had nice returns and yield.

    Are you looking strictly for a high yield bond fund or income? If income, take a look at Allianz Income & Growth, AZNDX. It’s classified as a moderate allocation fund, but pays a very nice distribution with the holdings almost equally divided among equity, bonds and convertible securities. Don’t go by the stated yield at web sites, but take a look at the distribution itself.

    I think you have some time before rates rise in any meaningful way, but depending on what you are looking for, these are a few options to explore. Good luck.
  • If you are willing to consider CEF's then HIX - Western Asset High Income would be worth your time.
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