Charlie, I'm trying to put together a set of guidelines (not rules) for my daughter that aren't based merely on what seems to be working now, but point toward risk-management principles that apply to any asset-class, anytime. (Risk is risk, no matter where it is found). I would say that in most times (recession troughs excluded), bonds under 50 offer similar risks as stocks under $1.00. I don’t touch penny stocks (anymore). I try to keep exposures per position for such issuers under one-eighth of one percent of AUM You have a great advantage there (especially for junk). I’m now trying to get my exposure down below 3% of my bond holdings. 1-2% would be even better, but that’s still a ways off.Thanks for bringing up this subject. It motivated me to do a thorough analysis of my buy-prices vs default/return rates. I should’ve done this earlier. Howard
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