Consequently, corporate-bond investors are demanding a 1.64 percentage point premium above benchmark government rates for investment-grade notes, the highest since July 2013.
“Junk bonds have slipped 2 percent since the end of June, reducing gains this year to 0.5 percent, according to Bank of America Merrill Lynch index data. Investment grade debt has lost 0.1 percent this year, but since June 30 has returned 0.3 percent,” according to Bloomberg.
iShares iBoxx $ High Yield Corporate Bond ETF
Tom Lydon’s clients own shares of HYG and LQD.