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High-Yield Bond Fund
(redirected from Junk 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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After taking over the junk bond fund, Feltus and Wright finished 2007 with a 7% gain, ranking in the top 2% of all high-yield funds, according to Morningstar.
Cash flows in and out of junk bond funds in the latest quarter also were erratic.
 
 
 
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