NEW YORK ( TheStreet) -- Struggling to obtain income, investors have raced to buy high-yield bonds. High-yield funds have returned 7.9% this year, compared to a gain of 3.7% for the Barclays Capital Aggregate bond index, according to Morningstar. Attracted by the strong returns, investors have poured $16 billion into high-yield funds this year, a big gain for a category with $227 billion in total assets.Now some analysts worry that too much cash is rushing into high-yield bonds, which are rated below-investment grade. Fund companies apparently share the concern, and they have shut portfolios to new investors. Funds that closed recently include T. Rowe Price High-Yield (PRHYX) and Vanguard High-Yield Corporate (VWEHX).
Race to Safety: Best High-Yielders
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