I think credit is a good play right now, especially if you believe the recovery story. And both the equity markets and bond markets seem to be pricing this in... bonds got killed last week on the back of stronger data and revised Greenspan. However, corporates spreads have actually widened, largely due to the whole Enron affair and offer good risk/return.


I don't know about high-yield, as that tends to be name specific but the investment grade area looks quite good to me for playing the spread.


Of course, the problem for most retail investors is that liquidity in corporates is poor and buying spread is difficult.