Exacerbating the sell-off in junk bonds, global equities markets faltered on weak corporate earnings and pessimistic news, notably from increased sanctions in Russia and default concerns in Portugal.
“There is not much of a cushion of yield to protect investors from an increase in volatility,” Chris Iggo, chief investment officer of AXA Investment Management’s fixed-income unit, said in the article.
iShares iBoxx $ High Yield Corporate Bond ETF
For more information on speculative-grade debt, visit our junk bonds category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of HYG and JNK.