Top 2 US High Yield Fund that I currently own:
Hield Yield (HY) Bonds or as they call Junk Bonds usually offer good return vs safe assets, they are somewhat risky when the company does not do well or its country is not helping them when they are in need.
But for US HY Bonds, its pretty safer than other HY Bonds (80% component is in US), US in particular tends to take care companies which are in need or in decline, that's why I chose these 2 funds with highly invested US Corporate debts which return 7.29% and 7.92% gross respectively and pay monthly dividends. Yes that's right, monthly (7.92% / 12 )
HY Bonds usually are OK when the country(U.S.) are:
-strong and has no default issues
- growing economy
- low interest rate
- consists of many medium graded junk bonds (BB and up)
But last June 2013, HY Bonds took a beating, losing 2-3% of its peak value, due to increasing interest rates and US market correction(7.5%), making these HY Bonds less in NAV value.
Still I think these HY Bonds offer greater return than any other investments out there with tolerable risks(as stated above).
So for me, instead of putting all to Equity, these 2 HY Bonds are my top choices as alternative which give good return and I personally own them together with some US Treasury Bonds/Funds.
** HY Bond components have risk of default and flactuate more depending on market rates rather than US Treasuries,so know when to buy and get out.
*** HY Bonds usually correct a lot when market corrects deep, which is a good time to BUY, and HY Bonds usually rallies as well when market overshoots up, which is an opportunity to SELL
#1. HSBC Fund Code: U62527 -
BlackRock Global Funds–US Dollar High Yield Bond F(A6–USD-MDIST-CASH)
Top 5 bond holdings country exposure
| Country exposure |
% |
| United States |
79.53 |
| Luxembourg |
4.14 |
| Canada |
3.81 |
| United Kingdom |
3.15 |
| Ireland |
1.61 |
Top 10 holdings
| Holding |
% of net asset |
| Engy Future Inter Hldg Co Ll 10% |
1.18 |
| Gmac Cap Tr I Pfd |
1.03 |
| Cds: (Cdx.Na.Hy.20.V1) 5 06/20/2018 Bbsw |
0.96 |
| General Mtrs Cv |
0.89 |
| Gmac 8% |
0.88 |
| Novelis 8.75% |
0.83 |
| Fmg Resources August 2006 Pt 144A 6.375% |
0.82 |
| Caesars Oper Escrow 144A 9% |
0.79 |
| Hd Sply 144A 7.5% |
0.74 |
| Sprint Nextel 144A 9% |
0.70 |
| % of asset in Top 10 holdings |
8.83 |
Dividend Information
(as of 30-06-2013)
Target distribution frequency:
Monthly
Last dividend paid (per unit):
USD 0.03
Last ex-dividend date:
28-06-2013
Dividend
yield is the dividend amount declared over the past twelve months as a
percentage of the last month-end fund unit price, show in 2 decimal
places. The amount of dividend may not be guaranteed by Fund House.
Yield And Credit Information
(as of 30-04-2013)
Average current yield:
6.79%
Average yield to maturity:
5.40%
Average duration:
0.39 years
Average credit quality:
B
Credit quality breakdown:
|
% |
|
% |
| AAA |
0.00 |
BB |
28.40 |
| AA |
0.00 |
B |
47.00 |
| A |
0.00 |
Below B |
20.80 |
| BBB |
2.20 |
Not Rated |
1.60 |
Fund size (Million):
USD 4,874.23
(as of 28-06-2013)
Fund manager
(Start date):
James Keenan (01-06-2007)
MitchellS. Garfin (08-05-2009)
Derek Schoenhofen (08-05-2009)
Fund house:
BlackRock (Hong Kong) Limited
#2. HSBC Fund Code: U62498
Allianz US High Yield Fund (Class AM -H2- USD -MDIST-Cash)
Top 5 bond holdings country exposure
| Country exposure |
% |
| United States |
91.71 |
| Canada |
2.67 |
| Luxembourg |
2.02 |
| Bermuda |
1.24 |
| United Kingdom |
1.15 |
Top 10 holdings
| Holding |
% of net asset |
| ArcelorMittal19 SrN |
1.15 |
| Everest Acq Llc/Finance 9.375% |
1.06 |
| Kinetic Concepts 10.5% |
1.00 |
| United Rentals North Amer 8.375% |
0.98 |
| Ally Finl 8% |
0.98 |
| First Data 12.625% |
0.98 |
| Reynolds Grp Issuer 9.875% |
0.98 |
| Swift Svcs Hldgs 10% |
0.97 |
| Mcclatchy 144A 9% |
0.95 |
| Navistar Intl Corp New 8.25% |
0.95 |
| % of asset in Top 10 holdings |
9.98 |
Dividend Information
(as of 30-06-2013)
Target distribution frequency:
Monthly
Last dividend paid (per unit):
USD 0.07
Last ex-dividend date:
17-06-2013
Dividend
yield is the dividend amount declared over the past twelve months as a
percentage of the last month-end fund unit price, show in 2 decimal
places. The amount of dividend may not be guaranteed by Fund House.
Yield And Credit Information
(as of 30-04-2013)
Average current yield:
7.97%
Average yield to maturity:
6.74%
Average duration:
3.06 years
Average credit quality:
B
Credit quality breakdown:
|
% |
|
% |
| AAA |
0.00 |
BB |
27.91 |
| AA |
0.00 |
B |
56.98 |
| A |
0.00 |
Below B |
10.03 |
| BBB |
5.09 |
Not Rated |
0.00 |
Fund size (Million):
USD 5,737.71
(as of 28-06-2013)
Fund manager
(Start date):
DouglasG. Forsyth (02-08-2010)
Brit Stickney (02-08-2010)
Fund house:
Allianz Global Investor Hong Kong Limited
