No more free lunches, everyone.Some interesting takeaways from the Fed meeting earlier this month, and the implications might not be very clear for investors. Probably the most widely discussed event was around interest rates, which ended up being a non-event; they were unchanged. What did come up in the Fed notes that I found interesting was that the reserve bank is interested in getting a start on deleveraging its balance sheet. That is another way of saying that it is interested in selling some of the bonds they have been accumulating back into the market. This would be a good time to think about reducing your exposure to leveraged bond funds, especially the ones working with junk bonds, or mortgage-backed securities. More bonds = lower yields = less demand = losses.The fund I specifically had in mind right now is the Pimco High Income Fund (PHK), which, as of their most recent annual report holds about 26% of their asset value in mortgages of various types. That wouldn't be such a serious problem if the duration on those bonds wasn't significantly longer than the other bonds they hold. Over time, the fund's composition is such that as bonds mature, new bonds will need to be bought to replace them. As you know, interest rates are pretty low right now, and even though the Fed has talked about interest rate hikes that still might come this year, they aren't expected to be big increases. In other words, lower credit corporate bonds that might otherwise have high yields aren't really going to be available. As a result, the duration weighted exposure of mortgage bonds in their portfolio is slightly over 40%, and about 40% of those mortgage bonds aren't agency guaranteed.All of a sudden, the 23% leverage ratio looks unsafe. But all is not lost, and as a matter of fact, Pimco has a way of addressing these future shortcomings, but you're not going to like the solution: It's cutting dividends. In 2015, the fund chopped the monthly payment from 12 cents to 10. No biggie. But then it cut it again this year to 8 cents. Beware of a misleading NAV.Pimco quotes the Net Asset Value at about $6.83, but remember that figure is built on the resale value of all of it's current holdings, and will come down over time if rates stay pretty low. I couldn't tell you a precise amount, in fact, I don't think I could even estimate just how much, even if I knew exactly what rates would be for the next few years. It's pretty safe to say that the price of shares will move closer to the NAV over time though, and it has had a trend of falling. ACTION TO TAKE:Bottom line, if you hold PHK, you are going to see more dividend cuts. Now, if you've been prudent during recent events, you haven't got a large exposure to this fund, so if you have 5% of your assets in either PHK or other high yield bonds, I'd say just stay where you are. If you have more than that, trim it back and stay with large cap stocks. Continuing low rates will be good on earnings for corporations. You can try to cost average on interest rate changes or dividend cuts, but I wouldn't expect a miracle. If you have a favorite high yield bond fund, or really any kind of dividend paying stock that you're concerned might have trouble paying their bills, I'll be happy to take a look for you, just leave a comment with the ticker.