BHK - BHK: A Leveraged Bond Fund For Risk-Averse Income Seekers
- Investors continue to struggle with generating any degree of income off of the assets in their portfolios.
- BHK invests in mostly high-quality investment-grade bonds, particularly U.S. Treasuries, so is able to keep its default rate incredibly low.
- The fund uses a significant amount of leverage to boost its yields, but given the high quality of its assets, this is probably not a problem.
- The fund did fail to cover its 5.56% yield in the most recent six-month period, although it did manage to get very close and the distribution is probably safe.
- The fund trades at a premium, but it is currently a much smaller premium than usual.
For further details see:
BHK: A Leveraged Bond Fund For Risk-Averse Income Seekers