Consequently, the lower liquidity in the underlying market could make it harder for sellers to find buyers in the bond market. Additionally, the current volatility in the energy market increases the danger of a major sell off, especially with energy debt making up 13% to 14% of junk bonds.
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.