Turning To Chapter 11 Junk For Big Risks And Rewards

As the junk market recovers from its battering, Fidelity Investment's Capital & Income fund is poised to profit. Back in December, 1990, Fidelity got investors' approval to adopt a more aggressive strategy for managing what was then the Fidelity High Income Fund. Instead of shying away from the riskiest and most lucrative part of the market--namely, the highly illiquid bonds of companies near or already in bankruptcy--Fidelity plunged in.

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