CREDIT SUISSE HIGH YLD BND F (DHY)

I think DHY (Credit Suisse High Yield Bond Fund) will continue to outperform this year, simply on the basis that with all of the governments of the world flooding liquidity into the markets, we will not see the apocalyptic bankruptcy scenario's that had originally been envisioned.

With earnings growth in the S&P stalled, I don't think that we'll see that index making any further dramatic moves upwards. In the mean time, DHY's bonds will continue to earn current income and have the valuations of the bonds they hold move closer to par value. Sure, if you invested a few years ago, you'd still be underwater, but investing today and moving forward, it seems to me that DHY will throw off so much cash in the short term that it provides a significant margin of safety in this market.

I'll be honest and say that on a price basis, I'm slightly underwater from my holdings of DHY, but have averaged down significantly, AND have earned dividends that far exceed my paper losses.