Investors are “chasing higher yields from ‘junk’ bonds, because they’re not getting enough income from investment grade corporate bonds, dividend paying stocks, money market funds, or U.S. Treasuries,” it said. “And as result, they are taking on more financial risk.”
The junk bond ETFs are yielding more than 7%. Both funds hold over $10 billion in assets.
“Investors of all stripes are once again piling into ‘junk’ bonds,” according to a recent Wall Street Journal article. “The buyers are coming from both sides of the investing fence—from bond investors eschewing the low yields of U.S. Treasury debt to stock investors seeking protection from swings in the market.”
iShares iBoxx High Yield Corporate Bond
