For now, it appears ANGL’s index provider is exercising prudence in excluding PG&E debt.
“We believe the indexer has exercised discretion with regard to the index rules in a thoughtful and prudent manner,” said VanEck. “That is not to say the bonds in question are certain to fall further in value, that PG&E investors have been saved from losses, or that the bonds cannot rally from here. Markets are quick to price in bad news, and the reorganization of PG&E could, under reasonable assumptions, leave a high recovery value for the bonds.”
ANGL holds 225 bonds, about 91% of which rated are BB or B.
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