35.62 0.00 (0.00%)
After hours: 4:05PM EDT
|Bid||35.49 x 300|
|Ask||35.92 x 400|
|Day's Range||35.57 - 35.79|
|52 Week Range||35.35 - 37.46|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.40%|
Concerns over the frothy high-yield bond sector are rearing its head, with short interest on high-yield exchange traded funds hitting a new record in February.
Traders are bearish on high-yield corporate debt exchange traded funds (ETFs). Data confirm as much. For the week ended Feb. 27th, investors have yanked $171.3 million from the iShares iBoxx $ High Yield ...
If we turn back the clock to before the recession, we find that US debt levels weren’t this high, and unconventional programs like quantitative easing helped the economy recover from the Great Recession. The US Treasury must deal with higher interest rates and borrow more to keep the economy running, and this cycle could turn into a downward spiral unless revenues increase. The US Treasury is the king of the credit markets, and it’s followed by investment-grade (LQD)(VCSH) bonds and junk (JNK) bonds.
The recent market turmoil that shook investors’ confidence has settled for the time being, but the fear that another correction is around the corner could be unsettling. The reason for the market correction was the continued increase in bond (BND) yields, which resulted from rising inflation expectations. While everyone was focusing on market turmoil, investors may have missed out on the possibility of increased government debt, fueled by recent tax cuts and an expansive budget.
Demand to borrow ETFs that track junk bonds, a key metric determining short interest, has reached a value of $7 billion, its highest level ever recorded.
The catalyst was ongoing buying demand for bonds — especially high-yield “junk” issues — which is calming the nerves surrounding higher interest rates seen earlier this month. In his pre-released statement, he noted high asset price valuations, a firming of inflation pressures and ongoing labor market tightness as reasons to continue on the path of increasingly aggressive policy tightening. Treasury bonds strengthened, pushing down yields.
The advent of exchange-traded funds, especially high-yield ETFs, in the stock market offered investors with some of the best ways to create a diversified portfolio. ETFs offer mutual fund strength diversification, and spreading that risk creates more safety, up to a point.
The SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), the second-largest high-yield corporate bond exchange traded fund by assets, is attracting some bearish bets. Bond investors have been dumping their ...
Recent turbulence in equities made its way to the corporate bond space. Last week, spreads on the Morningstar Corporate Bond Index, an investment-grade corporate bond gauge, and the BofA Merrill Lynch ...
Much of that volatility has been driven by the CBOE Volatility Index (VIX) and traders trying to cover their short volatility exposure. Mercifully, it looks like a lot of the volatility in the volatility market should start to decrease as we get further into the week.
As has been widely documented, high-yield corporate bond ETFs have been getting pounded in recent sessions as stocks slide. Over the past week, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: ...
Unlike the stock market, which has been rocked by episodes of volatility, the corporate credit market has been mostly insulated. "With potentially 'me-too' strategies still out there, not mention concerns how these shocks impacted [commodity trading advisors] and risk-parity funds, it might be too early to say the coast is clear," he adds in a research note. The muted rise in spreads in credit-default swaps for indexes covering investment-grade and high-yield contrasted with the jump in the VIX, the CBOE volatility index for the S&P 500, Goncalves says.
Growing anxious over the rising U.S. borrowing costs, fixed-income investors have been dumping speculative-grade or junk bond ETFs. Over the past week, the iShares iBoxx $ High Yield Corporate Bond ETF ...
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