Also in the high-yield bond market, spreads – or risk premiums over Treasuries – and yields have both been on the rise lately, he writes in a separate blog post for Barron’s.
“This could be simply that the market’s taking a breather after shattering previous record-low yield levels,” Aneiro said.
JNK and iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG) are the largest junk bond ETFs. The funds invest in speculative-grade corporate debt and are paying 30-day SEC yields just shy of 6%.
SPDR Barclays High Yield Bond ETF
Full disclosure: Tom Lydon’s clients own HYG and JNK.