“Globally, the default rate fell to 2.7% in November from a revised 2.9% in October and 2.8% a year ago. In Europe, the rate fell to 3.1% from a revised 3.4% in October, but up a bit from 2.7% a year ago. Moody’s forecasts the global rate to finish 2013 at 2.8% before falling to 2.4% a year from now,” Barron’s reported.
The Market Vectors International High Yield Bond ETF (NYSEArca: IHY), an ETF that has remained sturdy in the face of a flood of new high-yield issuance in Europe, jumped 1.4% in November. 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. [New Issuance not Holding Back This High-Yield Bond ETF]
SPDR Barclays Short Term High Yield Bond ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of HYG and JNK.