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KEMPER FINANCIAL SERVICES 'TOP TEN' REASONS TO INVEST IN HIGH YIELD BOND MUTUAL FINDS IN 1993

 CHICAGO, March 29 /PRNewswire/ -- According to Jim Neel, portfolio strategist for Kemper Financial Services, Inc. (KFS), 1993 should be another banner year for the high yield bond market.
 After a year in which high yield bond mutual funds outperformed both stocks and government bond mutual funds, Neel is still bullish on the high yield bond market. In fact, he believes that high yield bond mutual funds have the potential to again produce excellent returns for mutual fund investors. Taking a cue from the "Late Night" talk show host David Letterman, Neel cites his "top ten" reasons why the high yield market could be rewarding for investors in 1993:
 1. Yield -- High yield-oriented mutual funds currently provide a significant yield spread over long bonds. (see note 1)
 2. Price -- If the economy continues to grow at its current, slow but steady pace, there should be additional room for price appreciation in the high yield bond marketplace.
 3. Dividend -- The dividend levels for high yield mutual funds have the potential to remain quite stable if the economy maintains its current growth rate.
 4. Total Return -- Assuming a recovering economy and price appreciation, an investor in a high yield mutual fund should witness a favorable total return (dividend income plus growth in net asset value).
 5. Defaults -- According to Merrill Lynch, (see note 2) the 1992 default loss rate is projected to be the lowest since 1988, considerably below the average yearly rate for the period of 1985-1991.
 6. Performance -- According to Morningstar, Inc. the average high yield bond mutual fund outperformed stocks and government bonds in 1992, (see note 3). Through price appreciation and the compounding of coupons, Neel believes high yield bond mutual funds have a good chance to outperform other markets again.
 7. Credit Worthiness -- In an economic recovery, lower-rated companies are better able to improve their credit worthiness.
 8. Interest Rate Environment-- High yield bonds tend to be less vulnerable to rising interest rates than other bonds. In a modest growth economy, the credit of high yield bonds tends to improve, resulting in good price stability. "For example," Neel said, "remember 1987: as interest rates rose, gradually over the year, government bond prices were put under pressure while high yield bond prices remained relatively stable."
 9. Improved Balance Sheets -- Compared to the 1980s, the environment in the 1990s should be better for high yield bonds as corporations refinance their debts at lower rates and are able to save tremendous amounts of capital.
 10. The Stock Market -- Compared to equities, the high yield market tends to be at an advantage during a modest economic growth period. While both need and benefit from an improving economy, the stock market generally requires a more dramatic recovery for good performance. Normally, the high yield market simply needs enough cash flow to service debt and to repay debt at maturity. As long as the cash flow is not significantly damaged, which it tends not to be during a modest recovery, the high yield market should benefit.
 Kemper Financial Services, Inc. is one of the nation's largest money managers. Together with its affiliates, KFS manages more than $69 billion in assets. KFS is part of the investment services segment of Kemper corp., a nonoperating holding company with major subsidiaries in asset management, life insurance and securities brokerage.
 Note 1. Date effective on 3/5/93. Source for the 30-Year Treasury Bonds was the Wall Street Journal on 3/9/93 and for the high yield corporate bonds was 10.56 percent (based on the Merrill Lynch Bond Index).
 Note 2. Merrill Lynch 1992 Third Quarter Update, "Defaults and Returns on High Yield Bonds."
 Note 3. Source Morningstar, Inc. dated 2/5/93. Stocks represented by the Standard & Poors 500 Stock Index. The Standard & Poors 500 Stock Index is an unmanaged index generally representative of the U.S. stock market. Government bonds are represented by the Lehman Brothers Long Government Bond Index.
 -0- 3/29/93
 /NOTE TO EDITORS: The future performance of a high yield mutual fund or of high yield bonds in general cannot be guaranteed. Also, future market conditions cannot be assured. Historical performance of a fund or market may not represent future performance. High yield bond funds invest in lower rated and unrated securities which present greater risk of loss of principal and interest than higher rated securities such as treasury obligations which are guaranteed by the U.S. Government. Fund returns and net asset value will fluctuate./
 /CONTACT: Margaret Rozen, 312-499-1801, or Steve Radis, 312-499- 8393, both of Kemper Financial Services, Inc./


CO: Kemper Financial Services, Inc. ST: Illinois IN: FIN SU:

TS -- NY069 -- 0548 03/29/93 13:08 EST
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Date:Mar 29, 1993
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