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(Scott Rothstein/iStockphoto)

Own corporate bond funds? Time to take profits

Investors were richly rewarded for piling into corporate debt issues in the low rate environment following the financial crisis. Now, however, there are increasingly dark clouds on the horizon, and it appears the corporate bond investment theme has run its course.

The difference between high-yield corporate bond yields and government bonds, also known as the spread, is the primary measure of attractiveness for corporate bonds. The sector is considered cheap when spreads are high and corporate bonds offer yields well in excess of government ones.