However, Seaburg warned that debt financing could push more money into lower-quality companies, which are more unknown and come with greater risks.
Alternatively, investors may consider higher quality fallen angel junk bonds that have a greater tilt toward the upper end of the speculative-grade spectrum. For instance, the Market Vectors Fallen Angel High Yield Bond ETF (NYSEArca: ANGL) tracks so-called fallen angel, speculative-grade debt. [Fallen Angel Bond ETF for Higher Quality Junk Debt Exposure]
iShares iBoxx $ High Yield Corporate Bond ETF
Source: Yahoo! Finance
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, JNK.