At approx.100k the amount you will receive will vary based on #of days for payout..eg:28-31 days of a month..620-739 range..can u handle that, and even if the price drops further...you still receive the same amount..payout is per share.. as price drops yeild increases!!!!!!!!
I've been buying more at the current (5.49) level and don't mind the paper loss and here's why: 1. The current yield of 9+% looks a lot better than sub 2% of money markets. 2. There are NO subprime time bombs here. This is a plain vanilla high yield fund and buying now lets you get more than paid for the risk of downgrades and defaults. 3. The long term avergae performance of the fund is 5%+. Just on the propect of reversion to the mean, this fund will outperform money markets even with erosion of principal! I can see this fund back at NAV=6 early next year!
No chance of it "going under." BUY more with that high yield you are receiving. Dan Wiener (Independent Advisor for Vanguard Investors) recently upgraded this to a buy. This fund will do VERY well over the next couple of years.