New investment choice for deteriorating credit

Aaron Pressman

Seems like everyone and their broker is calling for a decline in corporate bond credit quality, especially at the lower end of the ratings scale. The fund innovators over at Rydex Investments in Rockville, Maryland, are always eager to jump on a hot trend. This week they introduced two new mutual funds, the Rydex High Yield Strategy Fund (Symbol: RYHDX) and the Rydex Inverse High Yield Strategy Fund (RYILX). Both will be actively managed and carry management fees of 1.45%. But the idea isn't to fill up the portfolios with long or short positions in actual junk bonds. Rather, following the trend of hedge funds and big institutions, the funds mainly will rely on credit default swaps.

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