Junk Bonds

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Credit spreads on speculative-grade junk bonds have rallied back to levels last seen before the sell-off in 2015. Huge oscillations in oil prices have caused spreads to widen in recent weeks, but junk bond investors who are wary of credit risk among the more leveraged oil producers can turn to a relatively new high-yield, ex-energy […]

Speculative-grade debt and junk bond-related exchange traded funds have made a quick turnabout as crude oil prices oscillate from a bear to bull market in less than a month. In seven months last year, U.S. energy junk bonds lost $56.7 billion in market value, with average yields shooting up to as high as 21%, as […]

Despite all the misgivings about riskier assets in a volatile year, speculative-grade debt related exchange traded funds have steadily strengthened as yields on junk bonds dip to levels not seen since last summer. Year-to-date, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) and the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), […]

Yield-strapped investors seeking to augment their income should consider incorporating senior secured floating-rate bank loans and related exchange traded funds into their portfolios. A senior loan is a private loan a firm takes from an underwriting bank or a syndicate of lenders. The loans are also secured in that they are backed by the borrowers’ […]

Speculative-grade, junk bond exchange traded funds are beginning to slip as plunging oil prices renew default concerns for highly leveraged, high cost crude oil producers. Over the past week, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) and the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), the two largest high-yield corporate […]

Many expected a post-Brexit environment would weigh on sentiment and push investors toward safer assets. However, exchange traded funds that track stocks and riskier assets continued to draw investors over July, with the S&P 500 and emerging market exposure among the standouts. The benchmark S&P 500 index reached a new all-time intraday high of 2,177.13 […]

As the markets anticipate a higher likelihood of a Federal Reserve interest rate hike before the year’s end, it may be a good time to revisit senior floating-rate bank loans exchange traded fund strategies. A Senior loan is a private loan a firm takes from a bank or a syndicate of lenders. The loans are […]

High-yield, speculative-grade corporate bond exchange traded funds have gotten a lot of flak over perceived liquidity issues, especially if investors experience periods of extreme market stress. However, junk bond ETFs have proven to be sufficiently liquid as more investors eschew the primary markets for the ETF investment vehicle instead. “ETFs that track iBoxx indices have seen […]

As global government bond yields slipped deeper into the red, investors piled into relatively more attractive yield-generating U.S. corporate bond exchange traded funds. Global bond funds attracted $14.4 billion in net inflows, with U.S. bonds receiving $7.8 billion, over the past week, reports Joe Rennison for the Financial Times. The sudden influx into U.S. fixed-income […]

Amidst the Brexit induced shakeup, speculative-grade high-yield bond exchange traded funds attracted huge inflows as an extended low-rate outlook bolstered the case for yield-generating assets. Following the United Kingdom’s Brexit tally, investors piled $291 million into the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG), reports Rachel Evans for Bloomberg. Over the past […]

In the ongoing search for yield, exchange traded fund investors may consider diversifying with emerging market bonds to generate more attractive payouts. Supporting the global fixed-income market, central banks have implemented zero and even negative interest rate policies, along with other accommodative measures, that have pushed yields over $10 trillion in global debt into the […]

On the heels of BlackRock iShares’ new fallen angel bond fund, VanEck slashed the management fees for its popular bond exchange traded fund that tracks downgraded debt securities initially issued with an investment-grade rate. On Monday, VanEck announced the expense ratio for the VanEck Fallen Angel High Yield Bond ETF (NYSEArca: ANGL) will be lowered to […]

With mounting uncertainty over speculative-grade debt markets, Direxion Investments has expanded its line of inverse and leveraged exchange traded funds to include a high-yield, junk bond option. The recently launched Direxion Daily High Yield Bear 2X Shares (NYSEArca: HYDD) tries to reflect the daily performance of -2x or -200% performance of the Barclays U.S. High […]

BlackRock (NYSE: BLK) has expanded its line of iShares fixed-income exchange traded funds to include two more speculative-grade options that help bond investors target so-called fallen angels and the high-yield market sans energy exposure. The iShares Fallen Angels USD Bond ETF (NasdaqGM: FALN) and iShares iBoxx $ High Yield ex Oil & Gas Corporate Bond […]

With the Federal Reserve delaying its interest rate hike, municipal bond exchange traded funds maintained their momentum, with benchmark yields dipping to new lows. The iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) was slightly higher Wednesday, ending in the black for the 12th session in a row. MUB is up 3.2% year-to-date. Broad investment-grade […]

With the Federal Reserve largely expected to begin hiking interest rates sometime this year, fixed-income assets could weaken, but bond exchange traded fund investors have some alternative options to help maintain yield generation and hedge against the negative effects of rate risks. Bond-related ETFs are exposed to rate risks because of their effective duration exposure. […]

The European Central Bank is expanding its quantitative easing program to include corporate debt as a way to stimulate its economy. As demand for Eurozone debt rises, investors can look to international corporate bond exchange traded funds to capitalize on the momentum. The accommodative measures, bond purchasing programs and and even negative interest rate policies […]

Fixed-income investors may want to diversify into international corporate bond exchange traded funds that have large Eurozone exposure as the European Central Bank expands its bond purchasing program to include corporate debt. The ECB will be hoarding euro-denominated investment-grade bonds with maturities of over six months and up to 30 years from companies incorporated within […]

A speculative-grade, junk bond exchange traded fund has experienced extreme ebbs and flows in assets under management, reflecting banks and institutions’ reliance on a high-yield bond ETF to access the underlying debt market. Over the past month, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) experienced record-breaking daily withdrawals, despite its relatively […]

Investors looking into high-yield bonds to augment their fixed-income portfolio may consider a fallen angel speculative-grade debt-related exchange traded fund. On the recent webcast, Fine Tune Your High Yield Strategy, Francis Rodilosso, Portfolio Manager at VanEck, explained that recent and potential sector growth will contribute to support fallen angel bonds and related VanEck Fallen Angel High […]

Investors interested in the high-yields of junk bonds but are wary of potential credit risks can turn to a group of “fallen angels” bond-related exchange traded fund (ETF). On the upcoming complimentary webcast this Thursday, Fine Tune Your High Yield Strategy, Francis Rodilosso, Portfolio Manager at VanEck, will help explain the group of fallen angels […]

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 […]

While expectations have diminished that the Federal Reserve will be able to raise interest rates four times this year, the forecast when 2016 started, meeting minutes out earlier this week revealed that the central bank could initiate its first rate hike of the year in June. Higher rates could stymie high-yield corporate bond exchange traded […]

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 […]