Interesting. I never owned LQD, but it has a decent yield by 2012 standards. It looks like LQD got hammered worse than TIP in the 2008 selloff -- it's had a good run since then. A lot of the bond funds seem to be pretty close to all-time highs. I am still curious (anxious?) over how we're going to unwind from this bubble. A return to 2008 levels would be painful. I was fortunate enough to survive that selloff with little damage, but I'm not smug about it.
"I never owned LQD, but it has a decent yield by 2012 standards."
That would be the key--probably. The chase for yield trumps all--just checked a little while ago and LQD trading a little under a dollar over its net asset value at the time. At the same time corporate America is cutting or eliminating dividends as noted on the Political Calculation website. I'm no fear monger--just sayin'.