On the upside, market participants might be overstating rate risk as it pertains to high-yield bonds and ETFs like HYG and JNK. In fact, junk bonds can actually prove durable when rates rise.

“It’s also important to remember that high yield has actually performed quite well in rising rate periods, as the chart below shows. It also tends to perform well in a positive growth environment, holding a 0.76 correlation with U.S. PMI, according to our analysis using data from Bloomberg,” said BlackRock Global Chief Investment Strategist Russ Koesterich in a note out last month.

iShares iBoxx $ High Yield Corporate Bond ETF

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