Stock price when the opinion was issued
ZEF-T vs. ZHY-T. The question is credit risk. You have emerging market risk with ZEF-T and so you get extra yield. When you do the correlation of the higher yield, they trade more like an equity than a bond. ZEF-T is an equity type risk, where as ZHY-T is more like fixed income. He does not think it is the time to step into either of these.
Which fund would you recommend for high-yield bonds? You are always dealing with US bonds in this. He would probably look at the ZHY as well as the XHY. You have to remember that you are not getting the same premium for high-yield that you used to. He would rather buy a Covered Call. He is not a big fan of high-yield stuff.
Don’t invest in it because it is ‘high yield’. You are investing in the worst companies that have not defaulted yet. There is more risk in these bonds. When the economy turns down, these companies will struggle. It will trade like equities. He thinks markets are much closer to a top than a bottom.