No. of Recommendations: 1

There was some discussion of the danger of junk bond funds. The danger is greater than I had realized.

Today's Orlando Sentinel had an article on the Heartland High Yield Municipal Bond Fund, an open ended mutual fund.

On October 17, they had a one day drop of 68% in net asset value per share. The SEC had paid them a visit on October 16, regarding their method of bond valuation.

The SEC has been after mutual funds to use fair value pricing rather than market value pricing. Evidently it can make a huge difference. It probably makes sense for all of us who own bond funds to check on the methods our funds use.

Below is a link to a series of articles on the fund.

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