- Even though junk bonds entered 2014 sporting puny yields, they've continued to fly through the end of February, returning 2.76%. The average yield is now just 5.2% - 40 basis points below where is started the year - and the average spread to Treasurys has dipped to a post-crisis low of 3.81%.
- "This can't go on forever," says Barron's Michael Aneiro (not the first time he's sounded a warning). "This all depends on ultra-low interest rates, which allow junk-rated companies to refinance their debts indefinitely while pushing investors into riskier types of bonds."
- The two most popular ETFs, HYG and JNK are relatively unscathed on this risk-off day, -0.1% and 0.3%, respectively.
- ETFs: HYG, JNK, HYLD, HYS, SJNK, PHB, SJB, HYHG, ANGL, XOVR, HYLS, THHY, UJB, SHYG, QLTC, HYZD, HYND
From other sites
Video at CNBC.com (Oct 22, 2014)
Video at CNBC.com (Oct 21, 2014)
Video at CNBC.com (Aug 15, 2014)
at CNBC.com (Jun 25, 2013)
at CNBC.com (Jun 17, 2013)
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