Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Behrooz Rezai who wrote (16999)	11/2/1998 3:37:00 AM
From: Larry S.	Read Replies (2) \| Respond to of 53068

Junk is beautiful: - Junk bonds are currently yielding about 6%+ more than treasuries, this is a lot wider spread than traditional. The tide may be turning: from recent wsj article: HIGH-YIELD POPULARITY: The long drought may be over in the junk-bond world. As much as $1.2 billion flowed into junk, or "high yield," mutual funds in the week ended Wednesday, according to AMG Data Services. That's the highest one-week total since April 1997. The inflows made up the bulk of the $1.5 billion of new money received by all taxable bond funds during the week. The sudden popularity comes on the heels of a wave of redemptions totaling $3.75 billion from high-yield funds during the 12 weeks ended Oct. 21 amid investor concern about a looming recession and a general aversion to bonds with any risk attached to them. But the Federal Reserve's interest-rate cut on Oct. 15 has helped alleviate those concerns and has inspired investors to re-enter the high-yield market, despite generally poor results this year. Kemper High Yield A and B funds, for example, led the way with $269.5 million of net buying during the week, AMG says, but the funds are down 4.7% and 5.4%, respectively, for the year.