NEW YORK ( TheStreet) -- High-yield, or junk, bond mutual funds are luring investors turning up their noses at skimpy yields on Treasuries and money markets.Junk corporate funds currently yield 7.5%, according to Morningstar. But for richer income, consider high-yield municipal funds, which yield 5.4% tax-free. That's the equivalent of a taxable bond yielding 8.3% for someone in the 35% tax bracket. In contrast, the 10-year Treasury yield fell to as low as 3.38% this month.
Best High-Yield Funds Tilt Toward Safe
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.