Junk bond ETFs also help cushion the blow from interest rate changes. JNK has a 5.19% 30-day SEC yield, HYG has a 4.90% 30-day SEC yield, SJNK has a 3.79% 30-day SEC yield and SHYG has a 3.55% 30-day SEC yield.

Looking at the speculative grade debt market, company default rates are low and are expected to remain low after the low interest rate environment helped companies refinance at more attractive levels.

For more information on high-yield bonds, visit our high-yield bonds category.

 

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