I have some "junk" and "near junk" in my portfolio.
Don't you have some GMAC bonds bought recently? I've been seeing them in the news with a downgrade or imminent downgrade etc. How are you feeling -- same or worried? This was always my problem with buying individual junk bonds -- the credit risk, no matter how far-fetched it may seem, outweighs the slight yield premium in my book; I can get a junk bond fund to do almost the same thing, pay their annual mgmt fee, live through the mark-to-market while rates rise, but have a nicely diversified basket of bonds to spread credit risk of any single bum issue.
Not trying to win any converts but just curious how you assess the risk/reward tradeoffs.