“While the high yield market’s overall long term valuation is relatively attractive given solid corporate balance sheets and well contained default rate expectations, heightened tail risks associated with the fiscal cliff and European crisis require us to maintain our current underweight rating on the asset class,” GMP Securities analysts said in the report.
Of last week’s outflows, $723 million came out of high-yield ETFs, according to the article. [High-Yield Bond ETFs Getting Junkier?]
iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG)
Full disclosure: Tom Lydon’s clients own HYG.