Lux Investing

Can someone please explain the pros/cons behind investing in yield optimization notes given their high yields?

Public Comments

1. Junk bonds are dicey at the moment .. thats why credit spreads are still very wide (yield varience between junk and govt bonds) Higher yield is return for the risk associated of default of issuer .. so had you taken a higher yielding CDO packaged from subprime loans you would have been screwed. If you are looking for higher yields now then look for corp bonds with a AAA rating from moodys