LQD may face pressure from a couple of sources as well. With French bond yields reaching new highs relative to bunds and hitting outright yields of 3.66% in 10 years, you could see a shift out of corporate bonds. Read this story.... http://www.bearmarketinvestments.com/time-to-sell-hyg-jnk-and-lqd
why hold this falling knife? vanguard long term investment grade corp is holding up quite well, while this 1 is tied to perception of financials' woes.
heard some crazy stories re: us bank exposure to euro debt-- in the hundreds of billions. I'll believe it if I see substantiated details.
This might pique your interest...http://www.newworldorderreport.com/News/tabid/266/ID/8909/Federal-Reserve-Now-guaranteeing-75-Trillion-Of-Bank-Of-Americas-CDS-Derivatives-Trades-If-Europe-defaults-BOA-will-not-fail-because-the-US-taxpayer-is-now-liable-for-the-bill.aspx
re: all corporate index (investment grade no financials included)-- does such an index exist?
Thank you. Saved me some money.