This bond fund has many advantages in the current market and pays high dividends

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The River Canyon Total Return Bond Fund is able to use strategies employed by hedge funds, but without any restrictions on the timing or size of withdrawals.

Even if you love your bond fund, you have had to be patient because bonds’ market values decline as interest rates rise. It isn’t fun to watch your share price go down. Then again, if the fund’s yield is high and you are being paid monthly, it is much easier to wait.

The fund’s shares are distributed through investment advisers but you can also purchase them directly through brokerage platforms, such as Charles Schwab, for example, for a fee of about $50. He said that “50% of the fund has to be in what we categorize as highly liquid investments, by virtue of our single-day liquidity,” offered to investors in the fund.

The debtor-in-possession securities’ yields are typically set at the Secured Overnight Financing Rate plus 500 basis points, Reid said. That most recent SOFR rate posted by the Wall Street Journal was 5.3%, which would make for a 10.3% rate on a newly issued security of this type.

 

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