1. These "high yield" funds are always filled with crap and every credit cycle, will either blow up or end up with impairments. 2. 30% of their loans are fixed rate and durations are 3 years on average, so these loans should be trading below par 3. They have ~8% in USD loans and I do not believe they hedge their USD exposure, so these will be down a big chunk on FX losses 4. These funds should always trade at a discount because of the management fees that eat away at investor returns.
This is not even close to a buy yet.
As with the other listed debt funds, wait till there are impairments and all the wealth advisors tell their clients to sell.
PCI Price at posting:
92.0¢ Sentiment: Sell Disclosure: Not Held
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