- Most interesting as the returns from junk bonds cross 6% for the year (according to the BAML index), is Barron's Michael Aneiro noting the high-yield sector has never had a "coupon clipping" type of year, i.e. where the annual return is essentially the yield on the paper at the start of the year.
- Instead junk bonds tend to greatly overshoot or undershoot their January return targets - in its 23-year history, the Barclays U.S. High Yield Index has never returned between 6% and 10% in a single calendar year.
- The market came into 2013 with a 6.09% yield, so the 6% return through today is a bit ahead of target, but could end the year within that vicinity.
- High-yield ETFs: HYG, JNK, PHB, HYLD, HYS, SJB, UJB, SJNK, ANGL, BSJG, BSJH, BSJI, QLTC, XOVR.
Junk bond returns top 6% YTD
Oct 25 2013, 15:46 ET