Junk Bond ETFs Still Cruising as Yields Plumb Fresh All-Time Lows

ETF Trends

Junk bond ETFs such as iShares iBoxx $High Yield Corporate Bond (HYG) and SPDR Barclays High Yield Bond (JNK) continue to ramp higher with the market’s average yield threatening to fall below 5% for the first time ever.

“For a while it was getting boring watching the junk bond market set new record-low yields each day but now at least we have a possible milestone within sight and some drama to look forward to,” says Michael Aneiro at Barron’s.

“The sight of an average junk bond yield with a four handle (market parlance for the first digit being a 4) still sounds absolutely preposterous, but it’s frighteningly close, and frighteningly likely, at this point,” he wrote.

The two junk bond ETFs are already sporting yields below 5%.

JNK and HYG have 30-day SEC yields of 4.83% and 4.62%, respectively. Bond prices and yields move in opposite directions. [Junk Bond ETFs Still Attracting Yield Hunters]

Next page: ‘Not-so-high-yield’ bonds

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