iShares iBoxx $ High Yield Corporate Bd (AMEX:HYG)

bond - high yield performance ~match the iBoxx $ Liquid High Yield Index.

continue to think High Yield is the place to be for 2012

This is my favorite bond fund. High yields should continue to outperform for the next year. Treasuries and T-Bills give depressed rates of return (due to Fed intervention). Foreign sovereign debt has poor risk-return ratios. Retired people need income and are investing in high yields. This fund has an explosive net inflow over the last 3 years. Boomers are retiring and moving assets from equity to fixed income. I could go on and on. There are no fundamental reasons for this fund to go anywhere but up.

Strong consistent performer

With the coming end of QE2's support of the markets and the spectre of rising interest rates, junk bonds will be hit the hardest. HYG has slightly worse credit quality than JNK, so may suffer more. Close short if yields rise to 12%.

Interest rates will be low for the next two years at least.

High Yield corporate bonds when dividends are reinvested will yield a solid 8% before taxes after expenses.

I like this for the yield and the play on companies buying back distressed debt.

9% yield and a beta of 0.7.
That sounds like better risk-adjusted returns than I will get from the S&P 500 for a while.

tracks the market but pay's a much better dividend than any market indexed mutual fund

The second leg of the recession will kick in soon and then default rates will kick into overdrive.

An ETF is a good idea for a septegenerian like me. This
fund will provide income to balance out volatility of the stock market . If the bond market goes south , it can be sold in part or in whole.. (some risk involved here).

High Yield credit will benefit in the second half of the year as this cycle improves and liquidity returns to the markets

should get a pop when spread to quality eases

Need yield? The lower investment grade bonds have been beaten up way beyond reality. The payout overcomes the risk here and there is a good chance that NAV will soar as the economy recovers.

High yield rates near 20% with massive defaults already priced in. Ride the high yield through the recession, then big capital appreciation back to normal yields.

dump the junk