SEE MORE: Monitoring Junk Bond ETF Technicals

Looking at the U.S. debt market, credit risks seem to be fading. Many of the more distressed commodity companies have filed for bankruptcy already or reduced debt levels and away from commodities-exposed companies. Default rates on junk bonds are at 5.5% in the U.S.

We are in an “unusually low default rate environment,” Jessop added.

For more information on the speculative-grade debt market, visit our junk bonds category.

iShares iBoxx $ High Yield Corporate Bond ETF