High Yield Bonds in a Slow Growth Economy

This article makes a strong case for high yield bonds in a slow growth economy:

Yet slowing growth is a far cry from a double dip—a key distinction for high-yield bonds, which have seen surging issuance in recent weeks and continued inflows from mutual-fund investors. Even tepid growth makes it likely that riskier companies will be able to continue making interest payments and sidestep default. Stocks, meanwhile, need far stronger growth to justify any price lift.

My choice for the high yield space is the Barclays High Yield SPDR (JNK).   While the fund is up over 7% over the trailing year, it still has room to run in my opinion.  The current yield is over 12% and the expense ratio is only 0.40%.  The average credit quality is B and the duration is 4.7.  For someone looking for exposure to high yield bonds, JNK is the way to go due to the diversification provided in the index structure.