Well, one of the things I've learned from my Advisor firm when evaluating Funds? Go back to the last Bear and Ck how they did, to help you determine your Real Risk Tolerance and then? cut another 25% off those apy Rtns..as margin of safety for FP.
Also, Any Fund that has a Sigificant Risk for loss and is Unsecured? Is a Equity Investment.. ie: Corporate BBB/Junk bonds are Unsecured and depend on rating services that have proven to be UnReliable as well..( Think Arthur Anderson Days )
They aren't having to pay Higher Rates/Divs because they are so Good with Their Business,,just like anyone else wanting to make a loan with "questionable" credit history.. Don't care who they are..or who says they are a Good Investment..
Hyld Junk Bonds? Took a Big Hit in 08' and a larger % stand to Go bust yet this yr.. and I think if one is HNW and should be needing to take such higher risk in such investments..Historically? Compared to More Safer Bonds? HYld is marginal IMO and just not worth it.. Maybe a VBLTX ( AAA) but not much anyone else..
It's like those Advocating LSBRX ( Loomis Sayles Bonds).. Is another Hyld/Global Firm with alot of risk tied to it.. and it Blew up this past yr..If one looked at it in 00-02', they could plainly see it was a Underperforming "Bond Fund" vs it's much safer Peers in a Bear market..
of course, I don't invest into Bonds For anything much else than B. Grahms attitude of " For Preservation of Capital" comes first.. if I want more than the average safer Bonds Provide? Own Equities and pay alot less in taxes as well..
Or Just buy Balanced Funds instead..of Higher risk and Lower Rtn HYld Bonds..
Might want to go to the > Bond Squad
Message board for More Infro and advice..
'Don't try to force your Lower Amt. of savings and Income to try to make up for your shortcomings, either Work and Save More or Accept to Live on Less " ...