Last week, it was reported that investment-grade ETF inflows have increased five times that of high-yield ETFs. The corporate bond market has experienced strong performance due to the falling yields in Treasuries and diminished inflation expectations this year. [Demand Favors Corporate Bond ETFs]
However, 10-year Treasury yields reside around their lowest levels in a year, prompting some traders to speculate that interest rates are destined to move higher and do sooner than later.
Open interest in the HYG September $92, $93 and $94 puts is a about 107,000 contracts combined, according to OptionMonster data. JNK closed just over $41 Thursday and there are 25,000 puts in that ETF’s open across the September $39, $40 and $41 strikes.
iShares iBoxx $ High Yield Corporate Bond ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of HYG and JNK.