HYG,

High yield bonds have had a great run.  Normally, the low yields would give me pause.  One thing to consider, though is that HYG, for example, has seen it's duration come down from the 9 year area (not sure of the exact number) down to 4 years.

That is short enough that it offers a bit of protection in case yields spike up again.  I would still rather own preferred stocks yielding over 6% but, the high yield market is offering a reasonable alternative.

The key counter to this, is that default rates have been at lifetime lows (below 2%, I believe).  So, in a sense, the high yield market is priced for perfection, and that should always make us a bit worried.

In my portfolio, high yield is present but fairly small.