One of the better corporate bond ETFs over the past three months has been the Market Vectors International High Yield Bond ETF (NYSEArca: IHY). With European banks proving reluctant to lend non-investment grade borrowers, issuance of junk bonds on the continent has nearly doubled to $76 billion this year, helping IHY gain almost 6% in the past 90 days.
Four of IHY’s top-six country holdings are European nations with the U.K., Germany and Italy combining for just over 30% of the ETF’s weight. Over 46% of the ETF’s 370 issues are denominated either in British pounds or euros. [Global Junk Bond ETF Soars]
iShares iBoxx $ Investment Grade Corporate Bond ETF
Tom Lydon’s clients own shares of HYG, JNK and LQD.