- At 1.7% at the end of Q1, the U.S. junk bond default rate is off from 2.2% at the end of 2013, and at the lowest level since February 2008, according to Moody's. With the market yielding an average of just 5.2% (prior to 2012 it had never been below 6.5%), the default rate better stay low.
- Moody's sees the default rate rising to 2.4% by year's end and 2.7% one year from now - both still well below the 20-year average of 4.5%.
- It's not necessarily a booming economy, but instead welcoming debt markets which allow low-rated issuers to refinance at extended maturities and lower rates.
- ETFs: HYG, JNK, HYLD, HYS, SJNK, PHB, BSJF, SJB, BSJE, BSJG, HYHG, BSJI, ANGL, HYLS, BSJH, UJB, XOVR, THHY, SHYG, QLTC, BSJK, HYZD, HYND, BSJJ
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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