Interesting to be seeing this in the midst of
a junk bond rally.
With the Fed's zero interest rate policy in place through 2014, this is certainly pushing money into equities as well as
the junk bond rally that saw record inflows last week as well.
There are various ways to participate in
the Junk Bond rally that is just underway - from purchasing individual corporate bonds to diversifying risk with double - digit yielding Bond ETFs, Mutual Funds and individual corporate paper.
Not exact matches
5 Things to Watch Next Week: Saudi Arabia and Iran, Bitcoin in Correction, Stocks Left Behind,
Junk Bonds, and the Dollar
Rally
Junk - bond ETFs rallied on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result, bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Tre
Junk -
bond ETFs
rallied on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result,
bond yields are under 6 percent for the first time ever, and
junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Tre
junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Trends.
As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period,
junk bond yields rated CCC or below have declined 1.5 percentage points as the
bonds have
rallied.»
(However, HYG and
junk bond funds are continuing to
rally as the hunt for yield continues)
They trade as if there is no conversion option, and some clever
junk bond managers buy them, knowing that if a few of them have stocks that
rally significantly, they will make enough extra money to aid their performance.
6)
Junk bonds have
rallied to a high degree; at this point I say, underweight them — the default losses are coming, and the yields on the indexes don't reflect that.
5 Things to Watch Next Week: Saudi Arabia and Iran, Bitcoin in Correction, Stocks Left Behind,
Junk Bonds, and the Dollar
Rally