JUNKYARD GEMS

Junk bonds got their namebecause they carry a high risk ofdefault, leaving bondholders withnothing but a hard-learned lesson.But investors have been flocking tojunk bonds lately, looking to beef upreturns on portfolios that have beenpummeled by losses on stocks. Thehigher risk of junk bonds comes withhigher interest rates that can averagemore than 10% for a junk bondindex fund and up to more than 20%for some individual bonds. Amongthe top-performing high-yield bondfunds, according to Morningstar(www.morningstar.com), is the PioneerHigh Yield A (800-225-6292),which has averaged a near 10%annual yield over the past 5 years.