Two U.S. high-yield funds: consider these two funds for high yields in U.S. dollars

Money Digest, Nov, 2002

If you are looking for high yields and can afford to take a moderate degree of risk, you may want to consider two U.S.-based closed-end funds that invest in high-yield (a.k.a junk bond) funds. Closed-end bond funds offer a couple of advantages. Since they often trade at a discount, their yields are higher. Also, whenever they go down -- for whatever reason -- the yield automatically goes up.

The first fund is the Corporate High Yield Fund (NYSE: HYV), which traded recently at U.S.$11.30 with a yield of 10%. The second fund is Debt Strategy Fund (NYSE: DSU), which traded recently at U.S.$4.75 with a yield of 16%.

Obviously, high yields don't come with high safety ratings. So if your aim is 100% safety, these investments are not for you.

On the other hand, if you like the high yields, coupled with the fact that these funds are to a certain extent protected since they hold a basket of debt instruments, then you may want to consider them as a means of boosting the overall return of your investment portfolio.