High Yield Spotlight

There’s no longer the need to take on a lot of duration or credit risk just get a halfway decent yield. Income seekers can now find it on the shortest and safest place on the curve! You can actually maintain a top-tier credit profile, take duration risk down to virtually nothing and boost your yield by more than 100 basis points over what Treasury bills are paying. The fund is the Janus Henderson AAA CLO ETF (JAAA).

With inflation coming in hotter than expected, the Fed looking more and more unlikely to cut rates anytime soon and the yen on the verge of collapse, the bond market is starting to become more volatile. The possible range of outcomes this year is quite large. That’s why it may be a good time for investors to consider managing some risk. That’s why I’m taking a look at the Franklin Limited Duration Income Trust (FTF) today.

This week’s inflation report once again enhanced the case for why the Fed is going to have a lot of difficulty justifying rate cuts later this year. The latest inflation data shows that more defensive strategies may have an opportunity to outperform soon. One fund that recently made the case for consideration is the Eaton Vance Enhanced Equity Income Fund II (EOS).