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This Risk-Taking Corporate Bond Fund Is on Our Radar

This Risk-Taking Corporate Bond Fund Is on Our Radar
Securities In This Article
Western Asset Corporate Bond I
(SIGYX)

Greg Carlson: A fund that's on our radar right now is Western Asset Corporate Bond. This fund struggled during 2008's financial crisis as some of its higher-risk holdings were hit hard. However, it's under different leadership now.

Ryan Brist took over the fund in early 2010. He still takes on significant credit risk even relative to the fund's typical peer. The fund can invest up to 20% of its assets in high-yield debt, and Brist is fond of bonds that ride the line between investment-grade and high-yield. However, he has managed to navigate the fund successfully through both positive and negative environments for credit risk. The fund's record is strong during the whole of its tenure.

The fund's fees are a bit above average. However, its asset base is quite small at this point. Fees should decline as the fund grows larger. We think it's an interesting choice for corporate bond exposure.

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About the Author

Greg Carlson

Senior Analyst, Equity Strategies, Manager Research
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Greg Carlson is a senior manager research analyst, equity strategies, for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He focuses on a variety of domestic-equity, international-equity, and quantitative strategies. He is the lead analyst on the American Century, Artisan, First Eagle, and Janus Henderson fund families.

Before joining Morningstar in 2003, Carlson worked as a writer and editor for Mutual Funds magazine for six years.

Carlson holds a bachelor's degree in journalism from the University of Florida.

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