A short interest is the quantity of stock shares that investors have sold short but not yet covered or closed out. Short interest is a market-sentiment indicator that tells whether investors think a stock’s price is likely to fall. It can also be compared over time to examine changes in investor sentiment.
According to the Ledger Gazette, JNK saw a large increase in short interest in March. “As of March 29th, there was short interest totaling 59,716,749 shares, an increase of 8.0% from the March 15th total of 55,311,046 shares. Based on an average daily volume of 11,745,648 shares, the short-interest ratio is presently 5.1 days.”
Related: A Smart Beta Bond ETF for Rising Interest Rates
Despite the safe haven bonds tend to be, ITE and JNK may be too risky in this political and economic climate for investors who are looking for more security.
For more information on the fixed-income market, visit our bond ETFs category.