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High-Yield Bond Fund

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High-Yield Bond Fund
A mutual fund that invests predominantly or exclusively in junk bonds. Because junk bonds have low credit ratings, they offer a comparatively high return. High-yield bond funds generally have portfolios containing at least two-thirds junk bonds. They provide a way for investors to take advantage of the return offered by a junk bond while also avoiding the risk of investing in a single bond at a high risk of default. See also: Investment grade.

high-yield bond fund
An investment company that attempts to produce unusually high income for its shareholders by maintaining a corporate bond portfolio that contains at minimum two thirds lower-rated bonds (Baa by Moody's; BBB by S&P).


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HIGH-YIELD HIGHFLIERS The typical high-yield bond fund is up 27% for the year through July 24, according to fund tracker Morningstar, and investors are chasing performance.
Analysts say that the average high-yield bond fund has just over 8% in bonds rated below B, making the Dreyfus fund quite risky.
Evergreen Income Advantage Fund is a closed-end high-yield bond fund.
 
 
 
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