Is the Fund buying high-yield bonds?
The Global Bond Fund does have the ability to buy junk bonds (by prospectus, we are limited to a maximum of 35% of the fund). However, we have made it a point to differentiate the Global Bond Fund from the other bond funds. Most of the below investment grade bonds purchased for the Global Bond fund are issuers from outside the U.S. Although we will occasionally buy U.S. high yield bonds, they will never comprise a significant portion of the portfolio. This is good for investors, because it keeps the funds from being highly correlated. Is this a good time to buy high-yield? You’re probably all aware of the argument that spreads currently are pricing in a very deep recession, or even a depression. We believe that kind of rationale must be taken with a grain of salt, however. That viewpoint typically stems from looking at what happened to junk bonds in prior downturns, i.e., post World War II recessions. A few caveats are in order. First, the high-yield bond market really has only been ar
