(This idea was first presented to our members back in mid-May as a replacement for another Core holding)
High Yield Market Today
High yield today is one of the few places to achieve a decent yield. Many would state that you are not being adequately compensated for the risks assumed. The statement revolves around the spread of high yield bonds today being extraordinarily "tight". When this is the case, the capital gains potential is relatively low unless spreads decrease to even lower levels.
At 324 bps, we are at the post-recession lows (or "tights") on