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I wonder how are those old GMAC bonds doing,
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Doing fine thank you very much. I bought them after the downgrade. Doing my own calculations, i figured that they couldn't run out of cash if they tried in the next 3 years.
9% for 3 year, I'll take that chance.
Th, concerning the Vanguard high yield fund... a couple of comments
1. It can be a really good fund depending on your situation
2. Calling it a "junk bond" fund is very generous. This is a fund that that has 51% of holdings at BB or better and 90+% at B or better so risk wise it's better situated than most similar funds.
3. Duration hovers around 4.4-4.5 so in addition to credit risk, the interest rate risk has been minimzed
Very goof manager tenure too
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