Junk Bonds

Related Outside Content

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 […]

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 […]

Bond investors have witnessed heavy selling in U.S. speculative-grade debt as concerns mount, but international high-yield bond exchange traded funds may be exposed to less risks than the domestic fixed-income markets. European Central Bank asset purchases, assurances from the Federal Reserve that the rate hike will be gradual, attractive yields and relatively contained risks associated […]

With the Federal Reserve beginning to normalize its monetary policy, fixed-income investors may still generate decent yields while hedging against rate risk through a new breed of interest-rate-hedged or zero-duration bond exchange traded funds. Click the image below to head to youtube and check out the interview! The opinions and forecasts expressed herein are solely those […]

The recent sell-off in the speculative-grade debt market may open up a buying opportunity for junk bond-related exchange traded funds as some argue the selling was overdone. Over the past three months, iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) declined 5.9% and SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) decreased 7.2%. Since […]

A Third Avenue junk bond mutual fund has halted investor redemptions, provoking concerns that this may be the canary in the high-yield fund coal mine. However, exchange traded funds that track speculative-grade debt are not exposed to the same level of risks. On Tuesday, Third Avenue Management LLC blocked investors from redeeming positions from the […]

The decline in the commodities space is stirring speculation that many heavily indebted commodity producers will go into default. Exchange traded fund investors, though, may hedge default risks with a credit default swaps strategy. ETF investors can hedge against the rising credit risk through a credit default swaps-related ETF, the ProShares CDS North American HY […]

Fixed-income investors have enjoyed generating attractive yields from their speculative-grade debt and junk bond exchange traded fund investments. However, many are now exposed to rising credit risks, especially as the Federal Reserve plans to hike interest rates. Year-to-date, the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) saw $2.4 billion in net inflows and iShares […]

U.S.-listed exchange traded funds continued to attract billions of dollars in November as low-cost passive strategies enticed investors in a volatile market. Erik Oja, S&P Capital IQ equity analyst covering asset managers, argues that long-term trend away from active funds to passive funds was exacerbated during the recent volatility, with BlackRock benefiting the most from […]

Many have sought out speculative-grade debt securities to bolster yields in a low-rate environment but face growing default risks in light of the commodities rout. However, fixed-income investors may consider a smart-beta junk bond exchange traded fund that shows better credit risk exposure. The PowerShares Fundamental High Yield Corporate Bond ETF (NYSEArca: PHB), which tracks […]

As the markets brace for the Federal Reserve to begin hiking interest rates, bond exchange traded fund investors should thinking rate risk and ways to mitigate the negative effects higher rates. On the recent webcast, Fixed Income Strategies Ahead of the Fed, Scott Eldridge, Director of Fixed Income ETF Product Strategy at Invesco PowerShares Capital […]