 Quote:
|
Originally Posted by clifp
Be careful with the Hartford fund, it is basicallly an intermediate term junk bond fund which invests in below investment grade variable interest rate loans to corporations, average credit quality is B-BB.
|
I agree. Bank loans get a good rap because they generally did well during the junk marfket collapse in 2002-2003, but in the intervening years many stupid bank loans have been made to junky borrowers.
I would investigate agencies, especially the Federal Home Loan Bank's bonds. They are backed by the feddle gummint (and not public/quasi-independent like Fannie) and generally offer a spread over comparable treasuries. They are also exempt from state and local income taxes.
__________________
"And Jesus spake, 'Become thou now fishers of adjustable rate mortgages'" - New Conservative Bible
|