“We’re putting money to work,” Maldari said in a Wall Street Journal article. “We think the trajectory for credit is still pretty good.”
Specifically, the outlook on defaults remains low unless the economy slows down. Moody’s Investors Service has pointed out that default rates remain low, with 1.85% of U.S. junk-rated companies defaulting in the year ended Aug. 31, compared to 14.1% at the end of 2009. [Investors Eye Cheap Junk Bond ETFs]
iShares iBoxx $ High Yield Corporate Bond ETF
For more information on high-yield debt corporate debt, visit our high-yield bonds category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of HYG and JNK.