Hiyield007

Total Rating:
0 / 0

3 Comments

    • Sat Oct 11th 01:06 AM | Rating: 0 0
      Commented on:
      Take a Look at Junk - Barron's
      Clorox Cowboy not all that bad of an ideal, just don't go overboard. Junk bonds are the most trend persistent asset out there and once they begin trending it is hard to break the momentum be it up or down. I prefer to wait for more signs of life and some indication the down trend is over. My concern is that default rates on junk bonds may be much greater than many expect in 2009 and hence we have a ways to go on the downside. On the other hand, junk often bottoms with the stock (October 2002 is a good example) so I may jump back in if I see some indication the stock market bear has ended. I will admit though, this fund has never has this type of carnage since its inception back in the 80s and it's tempting to leg in as you suggest. Personally though my open end junk bond of choice isn't going to be Vanguard. It always lags in bull markets. It normally outperfomrs its peers in bear markets but sure isn't this time around.
      View article »
    • Wed Oct 8th 23:06 PM | Rating: 0 0
      Commented on:
      Take a Look at Junk - Barron's
      As several have mentioned above way, way too early. And in the three market days since the Barron's article, the average open end junk bond fund (which best reflects the cash market) is down between 4% to 5% while the closed end junk funds have taken a much more severe pounding. This is now the worst junk bond bear market of all time. I never thought I would see anything as bad as the 89-90 affair but this one takes the cake. Junk bonds are the most trend persistent asset class out there and this bear trend will not be easily broken. My concern is that the default rate will hit historical highs in 2009 and normally new junk bull markets don't develop until we are right at or near the peak of defaults.
      View article »
    • Wed Oct 8th 22:51 PM | Rating: 0 0
      Commented on:
      Why Buy High Yield Bond Funds?
      A good article on junk bonds if only to alert investors that during junk bond bear markets the dividends are reduced. My only objection is the default rates on junk bonds are projected to hit record levels in 2009. As an aside, this is now officially the worst junk bond bear market of all time. I never thought I would see anything like 89-90 but this one takes the cake. I am drooling over the prospects of the next next bull market in junk bonds hoping it will be similar to 1991, but it may be a very, very long wait.
      View article »
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»