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HIGH-YIELD BOND FUNDS
Searching for bright spots in the wreckage of Wall Street has become a quixotic pursuit. One by one, practically every stockfund sector over the last three years--from large-company value to small-company growth--has seen profits tumble and crash. Lately, only bond funds have eked out positive returns. Investors poured nearly $132 billion into them in the first nine months of 2002, according to AMG Data Services, a provider of mutual-fund money-flow information.
But bond funds don't always sit in the plus column. When interest rates rise, bond prices can plummet. In 1994, when the Federal Reserve announced a series of rate hikes to ...