|Bid||0.00 x 1300|
|Ask||34.86 x 2200|
|Day's Range||34.50 - 34.68|
|52 Week Range||33.59 - 36.95|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-0.19|
|Expense Ratio (net)||1.25%|
The capital markets cheered on Wednesday as Federal Reserve Chairman Jerome Powell said the central bank would essentially cut interest rates due to ongoing risks from a U.S.-China trade war and a slowing economic landscape around the globe. As the case for more accomodative policy has strengthened, it's making the environment more challenging for fixed income investors. The presumption of the Fed's rate cuts translated to strength in U.S. equities as the S&P 500 went past the 3,000 mark for the first time.
The presumption of the Federal Reserve's possible rate cuts in 2019 are translating to strength in U.S. equities and certain corners of investment-grade bonds, but riskier assets like high-yield debt are feeling the lows. Fixed income investors navigating through the waters of high yield should take caution. According to a Nasdaq report, the "dovishness from the Fed has been bullish for most of the debt market, with sovereign yields falling and corporate debt getting a boost.
The quest for yield is becoming more challenging as the Federal Reserve is sounding more accommodative with respect to interest rate policy with possible cuts on the way. It's not relegated to just the United States as other parts of the world are also looking at record-low interest rates, which makes navigating the fixed income market a slippery slope. As concerns of a global economic slowdown permeate the markets, other factors are also contributing, such as an aging population.
According to a new Fitch Ratings report, a 2 percent high yield default rate is projected for 2020 based on a record low 12 percent 'CCC' share of issues and only 5 percent of outstanding debt due before 2021. "Fitch expects a 4% energy default rate for the end of 2020, with many of the default candidates having legacy issues from the 2014-2016 oil price collapse," said Eric Rosenthal, Senior Director of Leveraged Finance. As market headwinds from a trade war impasse buried the capital markets in volatility during the month of May, a de-risking occurred in funds specializing in high yield like The High Yield ETF (HYLD) .
As market headwinds from a trade war impasse buried the capital markets in volatility during the month of May, a de-risking occurred in funds specializing in high yield like The High Yield ETF (HYLD) . The fund, however, adjusted its strategy by making a move towards quality debt holdings as investors sought more fixed income exposure during this volatile swing. The Sub-Advisor seeks to achieve the fund's investment objective by selecting a focused portfolio of high-yield debt securities, which include senior and subordinated corporate debt obligations, such as loans, bonds, debentures, notes, and commercial paper.
Negative interest rates in Japan may have prevented potential investors from even looking at bonds in the land of the rising sun, but the nation's first publicly offered high yield bond could make them think twice--or not--given that the yield is a paltry 0.99 percent. The issuing company, Aiful, a consumer lending company, broke the mold with its bond offering rated at BB by the Japan Credit Rating Agency. Aiful raised eyebrows a decade ago due to questionable lending tactics, but this latest bond offering could spark some new investor interest.
U.S. equities rallied in 2019, and then took a dive following the latest U.S.-China trade deal news, but investors are always on the hunt for income–they could find those opportunities in high yield. As ...
Fixed-income investors should consider the benefits of an actively managed ETF approach to high yield bonds as a way to help enhance their bond portfolios. On the recent webcast (available On Demand for ...
In a changing fixed-income market environment, investors have to carefully balance yield generation with rising interest rates that are likely to result in slower economic growth, and perhaps even a recession. ...
HYND seeks to track the price and yield performance of the BofA Merrill Lynch 0-5 Year U.S. High Yield Constrained, Negative Seven Duration Index. The index is designed to provide long exposure to the BofA Merrill Lynch 0-5 Year US High Yield Constrained Index while seeking to manage interest rate risk through the use of short positions in U.S. Treasury securities. HYND normally invests at least 80% of its total assets in the component securities of the index and investments that have economic characteristics that are substantially identical to such component securities. 2.