The high yield bond market still has some good opportunities, but because valuations are so stretched, the key to success may be defensive positioning. Spreads are very low (400 bp over Treasuries), but not at historic lows (e.g. less than 300bp in 2007). On the positive side, credit quality has improved, but this has brought coupons down and raised interest rate risk accordingly. Some bonds to look at are Netflix, Carlson Wagonlit Travel, and McClaren Automotive.
OxWFD: There are a lot of risks out there for the high yield market. One of the more comforting aspects is that average duration of high yield bonds is only 4 years, so a slow rate rise would not wound the market too much.