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SPDR Barclays High Yield Bond ETF Message Board

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  • varia_nada varia_nada Apr 6, 2011 11:23 PM Flag

    JNK No Longer Worth the Risk

    First time bought a junk bond in my life, a few hundred shares at 40.4 a month ago, after reading an encouraging article at Seeking Alpha (forget the title) that JNK has a convixity of 0.02%. Now reading this message board, I am not sure if I did the right thing. Do you think investing in PIMCO closed end funds such as PCn, PHK, PCM, are safer for the long run? We need supplemental income , retiring this year. Are closed end funds hard to sell to get our money back when we need it?
    Can,t go to treasury/bonds, yield too low and might lose principle when yields move up and prices go down. Any one care to comment? Thanks.

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    • JNK hasnt been around long enough to really give a solid answer on its safety.
      All I would say is to spread your money around in lots of places for safety.
      If you want to go with Pimco products look at their income generated each year for like the past 10 years (if possible). that will give you a decent idea of what type of income highs and lows to expect in differente economic envrionments.

    • Diversity, don't put all your eggs in one basket.

      PHK, PTY, PGF, PFF, JNK.

      All will probably go south with higher interest rates, PTY gone up more and now going down more because Gross guru status.

      Put some in REIT with divvy >10%, too with AGNC and NLY - the cream of the crop.

      Just my 2 cents.

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