SPDR LEHMAN HYB ETF (JNK)

After looking at two of the biggest high yield bond ETFs (JNK) looked like a better option than (HYG). (JNK) is stronger investment for these reasons:
• Higher spread than HYG
• Lower management fees
• Trading at a lower premium
• Higher coupon

Pays a solid monthly dividend.

Long bonds and junk bonds are both traps for people who are trying to play it safe by hiding in a bear's cave. Two problems concern me about these bonds. One, foreigners stop buying bonds, which nuc all the current bonds as interest rates jump. Two, the "recovery" is a recovery in name only and some of the companies who are issuing junk become junk.
Besides these two little problems I'm sure the return on investment is more than adequate (sarcasm).

Getting bearish in the short term, believing that the market is over purchased. Do not want to put my money in cash, because inflation will devour it; therefore, buying bonds to gain interest, while my cash is setting on the sidelines waiting for the next round of stock buying opportunities.

It is time to short crap.

yield is still ridiculously high, if economy improves they will do well, if it doesn't then it will still outperform the equity markets

nice dividend

When our economy begins to recover more junk bonds will surface. Pays a monthly dividend.

Fixed income securities should be a part of every diversified portfolio. One should also be diversified within their bond holdings. If you're like me, you don't have enough money to buy many individual bonds, so an indexed ETF is the way to go. An ETF with junk bonds provides a little boost to your fixed income. For extra diversification among my bonds, I own this in addition to LQD and HYG.

Always been a fan of "Junk" in my investing "Trunk:!!!

high yields

This is a junk bond fund that holds 120 different bonds and currently yields over 15%. Even if some bonds default, I still expect over 12% yield, which is great for the near term.

The yield provides a nuce cushion while we wait for corporate debt markets to correct themself.

Once stocks boom, bonds will loom as is the cycle. Gotta love the monthly divs.

I've tossed 5K into JNK for the eye-watering yield but anticipate bailing out sometime next year if inflation starts to crank up. Achieving maximum profits overall will be a delicate balancing act between holding steady to keep grabbing the monthly dividend and closing out on a decent price rise before the inevitable inflation ruins the party. Certainly not a 'buy and forget' trade!

I am jumping on this while the market seems to be thinking the recession is over.. Ha!!

Love it at $36-30. I bought at $26 and the yield is over 15%, default is assumed at about 75%. I think this will turn out to be ridiculously pessimistic. i do think they will be higher then historical but not 75%. Collect the dividends and roll with the inflation that's coming that will help these guys survive.

Companies will have to borrow money to make up for loss of market capitalization. Given credit crisis many good companies will have to result to high yield bonds. These bonds are currently priced as if the world were going to explode tomorrow or other economic calamity that clearly isn't going to happen.

Paid Dividend