NEW YORK ( TheStreet) -- In the last few weeks markets have reacted swiftly to the threat of the Federal Reserve beginning to "taper" its bond purchases and other accommodative policies. An end to the current Fed policy would result in higher yields and lower prices for bonds and bond funds.To avoid further large declines in their bond fund portfolios, investors will need to seek out more alternatives that have less interest-rate sensitivity. This is where the new PowerShares Global Short Term High Yield Bond Portfolio ( PGHY) can help. The fund can own sovereign debt, quasi-government debt and corporate debt. It is a high-yield fund so the credit quality is low. The ratings breakdown allocates 48% to BB-rated debt, 24% B and 21% in C rated bonds. SIRI), Chesapeake Energy ( CHK) and Ally Financial ( ALFI). Some of the more exotic holdings include Petroleos de Venezuela and Finansbank Turkey. With only 31 holdings, some of which have 4%-5% weightings, a default from even one bond would be a large drag on the fund's performance.