Risky investments are expensive as never. The index of total return (interest + price change) of the CCC or below rated bonds has appreciated by 12 percent over the last twelve months. That's quite a lot.
Why are junk bonds so popular now?
There is too much money chasing too few quality investments. When the high-quality low-risk investments become too expensive, riskier investments with low credit quality are next in the queue. Note that the CCC or worse rated bonds are risky investments indeed!
At the yield of 8.02 percent, which is the lowest yield of the CCC-or-worse index ever, risky bonds are indisputably expensive. You can be almost sure that the next 12 months would not be as good as the past.
What should you do with your investments then? The Fed wants you to squander it: that's the goal of the low interest rate policy. No, I don't think it's wise.