There is a ton of demand for bonds out there right now, and it’s easy to see why: they’re offering big income streams—especially when you buy your high-yield “corporates” through our favorite income plays: closed-end funds (CEFs).
These days, there are plenty of CEFs kicking out yields of 12% or more. Put just $10,000 in a dividend-payer like that and you’re getting $100 per month.
These days, thanks to the Fed’s rate hikes, holding bonds—and essentially becoming a lender by doing so—means a lot more cash in your pocket, since you’re essentially “lending” at rates not seen in over two decades.
This post originally appeared at Contrarian Outlook.