When they are deeply below net-asset value, as high-yield bond funds are now, they can be very good buys.
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But when a collective judgment is reached that a particular asset class has been bid up too high, dollars are pulled and the asset class shrinks in value.
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Expectations have been driven so high that even asset injection at fair market value will disappoint markets.
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In 2007 the fund traded at a 50% premium to net asset value, in part due to their high distribution yield at the time.
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