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Originally Posted by saluki9
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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Yeah, if you bought GMAC during the recent trip into the gutter, you did good. GMAC is in pretty good shape. Can't say the same thing about GM, though.
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"And Jesus spake, 'Become thou now fishers of adjustable rate mortgages'" - New Conservative Bible
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