As yields rose in January, I reduced my exposure to intermediate-term bonds in favor of bond funds like PIMCO Income (PONDX) and Osterweis StrategicIncome (OSTIX), which have a broader spectrum of fixed-income that they can invest in.
Another bull on high-yield bond funds is Jack Bowers of Fidelity Monitor, who is recommending Fidelity StrategicIncome (nasdaq: FSICX - news - people ), which has 40% in high-yield debt, tempered by 60% in foreign and U.S. investment grade and government issues.