High-Yield Bonds

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A rising interest rate environment will weigh on fixed-income portfolios. Bond traders do not need to sacrifice yield-generation to diminish rate risk. Instead, investors can look to rate-hedged or zero-duration bond exchange traded funds. A relatively new breed of interest rate-hedged, zero duration ETFs hold long-term bonds, but they will simultaneously short Treasuries or Treasury […]

In anticipation of a rising interest rate environment, fixed-income investors should consider exchange traded funds that track floating rate notes. Should expectations of higher interest rates gain momentum, it would not be surprising to see investors embrace floating rate exchange traded funds as additions to fixed income portfolios. Related: 41 Target Maturity Bond ETFs for […]

As the U.S. braces for a rising interest rate environment, exchange traded fund (ETF) investors may adopt a bond ladder strategy to hedge against the risks through maturity- or target-date ETF options. With the Fed intent on hiking rates ahead, investors can implement a bond laddering strategy through defined-maturity bond funds to hedge their fixed-income positions. […]

Municipal debt and bond-related exchange traded funds have been used as a relatively stable fixed-income stream for many investment portfolios. Since muni bond interest is exempt from federal taxes, muni ETFs are a good way for investors seeking tax-exempt income, especially those in higher tax brackets. Due to its tax-exempt status, the asset category is […]

Junk bond exchange traded funds may still have legs as underperforming active managers help support prices. Speculative-grade, junk bonds have rallied off the February lows as some saw default risks, notably those associated with the energy sector, dissipate in light of rising crude oil prices. Year-to-date,  the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) […]

Speculative-grade, junk bonds have staged an impressive recovery from the February lows, but face mounting risks, notably from commodity producers. Investors, though, can diminish credit risks associated to more troubled areas through targeted high-yield bond exchange traded funds. The junk bond market faces heightened default risks ahead. According to Moody’s Investor Service, default rate for […]

Speculative-grade debt exchange traded fund (ETF) investors may be calling it quits after a three-month rally in junk bonds. The iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) experienced 27.8 million share redemptions, or about $2.6 billion in outflows, over the past four days, the longest losing streak since oil bottomed out on […]

Puerto Rico was set to default on payments Monday, but fixed-income investors continue to pile into municipal bonds and related exchange traded funds, driving the market higher. The commonwealth was expected to default on $422 million in Government Development Bank debt, but investors kept pouring more money into tax-exempt muni funds last week, reports Brian […]

As the European Central Bank embarks on a bond purchasing binge, the quantitative easing event has depressed yields across the Eurozone and pushed many toward riskier assets in search of higher payouts. Fixed-income investors may capitalize on the shift with high-yield international bond exchange traded funds that include European debt exposure. The ECB has enacted […]

Riskier speculative-grade debt and bond-related exchange traded funds have retreated over the past year and are trading at relatively attractive valuations. However, rising corporate default rates could bar the asset category from a full recovery. Junk bonds have rebounded alongside the equities market from the February lows. Year-to-date, the SPDR Barclays High Yield Bond ETF […]

While the Federal Reserve has revealed its intent to hike interest rates some time this year, fixed-income yields may remain depressed and bond related exchange traded funds could more room to run. On the upcoming webcast, Dynamic Fixed Income Strategies for 2016, David Mazza, Managing Director and Head of ETF & Mutual Fund Research at […]

Speculative-grade debt or junk bond-related exchange traded funds have moved in lockstep with the energy market, falling and rising with the ebbs and flows of crude oil prices. High-yield bonds have been rallying since the February 11 low, the same day oil hit a nadir. Since the February low, the SPDR Barclays High Yield Bond […]

High-yield, speculative-grade bond exchange traded funds are attracting billions of dollars as market volatility dissipates and investors look to capitalize on cheaper valuations in riskier assets after the recent sell-off. Investors funneled $2 billion into funds in high-yield and high-yield municipal debt peer groups over February, Todd Rosenbluth, S&P Global Market Intelligence Director of ETF […]

Jan van Eck, CEO of Van Eck Global, joined ETF Trends publisher Tom Lydon to go over some alternative fixed-income exchange traded fund strategies as we look to higher interest rates ahead. For instance, van Eck pointed to safer municipal bonds and even high-yield munis as a way for investors to continue to generate attractive […]

Fixed-income investors may gain exposure to U.S. dollar-denominated emerging market debt through ETF options EMB has a 7.01 year duration and a 5.30% 30-day SEC yield PCY has a 8.34 year duration and a 5.90% 30-day SEC yield VWOB has a 6.2 year duration and a 4.95% 30-day SEC yield LEMB has a 4.77 year duration and a 4.73% […]

Fixed-income investors who want to squeeze out a little more yield can look to a high-yield bond exchange traded fund ANGL tracks so-called fallen angel, speculative-grade debt, or bonds that started out with investment-grade ratings but were later downgraded to junk territory ANGL includes a hefty 73.9% tilt toward BB-rated debt, along with 11.5% B, 4.0% […]

ETF industry continued to accumulate assets in February Global exchange traded products, which include both ETFs and exchange traded notes, gathered $9.4 billion Garnering investors’ attention over February, ETFs that track gold price movements saw a new monthly flow record of $7.2 billion The exchange traded fund industry continued to accumulate assets in February on […]

Invesco PowerShares introduces DWIN that targets diversified, high-yielding assets The new ETF is a fund of funds, which means that it holds ETFs as its underlying component It may also favor overweighting U.S. Treasuries and reduce holdings to less than five components Invesco PowerShares has introduced a multi-asset income exchange traded fund to provide yield-oriented investors […]

Fixed-income ETF investors may want to favor riskier plays Investment-grade corporate bonds, high-yield debt and bank loans may boost returns while offering less volatility than stocks Bond investors interested in riskier investments with the promise of higher yields can turn to speculative-grade or junk bond ETFs With all the doom-and-gloom dissipating and the market rebounding, […]

ETF investors have turned to more steady fixed-income assets iShares U.S. fixed income ETFs attracted $7 billion in net assets over February However, with the stock market picking up and risk aversion dissipating, fixed-income investors are shifting back into riskier debt While the equities markets oscillates, exchange traded fund investors have turned to more steady fixed-income […]

Strengthened speculative-grade debt may continue to support junk bond-related ETFs If fixed-income market follows historical trends, junk bonds may continue to rally over the next few weeks Financials are the best performing sector when junk bond ETFs rise, according to Kensho data The renewed risk-on environment has helped speculative-grade debt strengthen could continue to support junk […]

As equities markets bounce back and oil prices edge higher from a 13-year low, the rising risk-on sentiment has brought fixed-income investors back to the high-yield bond exchange traded funds. Over the past week, the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) attracted $340.2 million in net inflows, iShares iBoxx $ High Yield Corporate […]

Most investors have shunned the riskier developing economies, but emerging market corporate debt and related exchange traded funds could turn around this year. “It’s quite bold, it’s quite risky, but I think this is the way we are going,” Sergio Trigo Paz, head of EM fixed income at BlackRock, told the Financial Times, predicting EM […]

Despite the ongoing volatility, the Federal Reserve has not shifted away from an interest rate tightening cycle. Consequently, investors should understand the potential effects or rising rates on the markets and incorporate alternative exchange traded fund strategies to adapt to the changes. On the recent webcast, Positioning Portfolios in a Rising Rate Environment, Joe Benevento, […]

As the Federal Reserve plans a “gradual” interest rate tightening cycle, exchange traded fund investors will have to adjust their portfolios accordingly. On the upcoming webcast, Positioning Portfolios in a Rising Rate Environment, Joe Benevento, CIO for Americans and Co-Head of Global Fixed Income at Deutsche Asset Management, Sebastien Galy, FX Strategist at Deutsche Bank, […]

Speculative-grade debt and junk bond-related exchange traded funds have been under pressure for most of 2015, potentially opening a bargain opportunity for fixed-income investors. Jonathan Beinner, chief investment officer at Goldman Sachs Asset Management, believes that one of the year’s big surprises may be found in junk bonds, which could “actually have decent returns,” reports […]

As people digest the changing Federal Reserve outlook, fixed-income investors may want to hold onto their municipal debt and bond-related exchange traded fund positions. “One area of the U.S. bond market that does merit attention is the municipal market,” according to Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions […]

With the Federal Reserve intent on gradually normalizing interest rates and default risks rising, fixed-income investors may utilize inverse or short bond exchange traded funds to hedge their corporate debt exposure. Banks and investors are turning to alternative tools to hedge losses as credit markets grow more vulnerable to shocks from commodity prices, notably depressed […]

Junk bond-related exchange traded funds that that cover some of lowest-rated companies may be in for more pain ahead as distressed debt levels in the U.S. rise. According to ratings agency Standard & Poor’s, the number of companies with the lowest credit ratings and negative outlooks increased to 195 in December, the highest level since […]

With potential credit and rate risks weighing on the fixed-income markets, investors who are looking for higher yields may turn to an actively managed junk bond exchange traded fund that has outperformed more popular investment funds. The First Trust Tactical High Yield ETF (NYSEArca: HYLS), an actively managed ETF that tracks high-yield debt securities rated […]