[macker]

Originally Posted by Shazam

Too bad we don't have tax-free municipal bonds like in the US.

Anyhoo, if you're interested in high-yield (*cough*junk*cough*) bonds, take a look at http://us.ishares.com/product_info/f...erview/HYG.htm

Junk bond rates are as high as 18% right now.

Be careful with any investment with junk in it's name. The herd is piling into corporate bonds so maybe it is time to be cautious here. Consider that today, the gap between where loans trade and where bonds trade is the highest since May 2005. This gap highlights the poor outlook for corporate bonds. This is the result of "a lethal cocktail of falling equity and bond prices and poor economic news. If you want to look at Corporate bonds I would look company by company and make sure you are comfortable with each position. With funds or etf's you may be getting what Warren Buffett refers to as deworsification in this example. Also be careful holding funds or etf's that are denominated in US as our currency will appreciate vs the US over the next 1-3 years in my opinion.