I think it will likely contract in the coming months, although very gradually.

The chance it could fall 10% in one day is something that one has to be careful about though.

Because of that reason, I still prefer JNK. You get almost as much in dividends, yet you have more liquidity, the ability to trade with options, and only a 1-2% premium.

My trades are too large for PHK to handle well, as I am responsible for 2-3% of the volume when I move around.

It is hard to sleep at night using margin while holding PHK too.


I sold my PHK today. Not bashing at all, just not comfortable with so much exposure to PHK.


I think it may selloff pretty hard after this dividend, but you never know. All I know is I sleep like a baby in JNK.