Junk Bond ETFs Quench Traders’ Thirst for Liquidity

“ETFs have been increasingly providing institutions with a safety valve to get out of investments quickly. These days, big bond buyers are willing to fork over cash for that,” according to Bloomberg.

Year-to-date, investors have pulled $797.6 million from HYG while adding $539.4 million to JNK. LQD has added over $2.4 billion in new assets.

iShares iBoxx $ High Yield Corporate Bond ETF

 

Tom Lydon’s clients own shares of HYG, JNK and LQD.