Diversification has been something of a dirty word in the financial markets for the better part of the past two years, but it's still an important component of investing. Conditions of the past couple of years shouldn’t have investors ignoring the basic risk-reducing benefits of investing across asset classes and geographies. For income seekers, the Calamos Global Dynamic Income Fund (CHW) may be a good solution.

Investors satisfied that the economy is in good shape as long as consumers keep spending and jobs remain plentiful seem to have no interest in pricing in credit risk at the moment. Investors seem to feel more than comfortable reaching for yields while ignoring some of the underlying fundamental risks. The abrdn Income Credit Strategies Fund (ACP) aims to take advantage of this trend. However, it’s taking a lot of risk to get there, both through security selection and the use of leverage.

While there are multiple economic indicators suggesting that the risk/reward for junk bonds is getting worse, investors seem content that they’re worth bidding up.  As credit conditions potentially get worse in 2024, being selective in the fixed income market might be as important as it’s been in a while. The BlackRock Corporate High Yield Fund (HYT) could be a good opportunity for those seeking high income coupled with a well-researched selection process.