High-Yield Funds: Rally Or Frenzy? Heavy November Inflow Junk may be overpriced if a recovery is delayed, some fund managers fear.(MUTUAL FUNDS)

Byline: CLAIRE MENCKE

High-yield bonds roared back last month from a lagging performance earlier in the year. And investors poured more than $2 billion into junk-bond funds in November.

Why? For one thing, as bond investors look past the recession to the first sparks of recovery, other types of bonds don't look so good. The Fed probably won't be slashing rates much longer to prod the economy.

That means bond yields won't be falling -- and prices rising -- that much more. Then, if you can buy a safe enough high-yield, you'll at least have a bigger coupon payment.

There's another reason for the sudden appetite for high yield. Investors don't …