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What's going on with high-yield? HYG is diving on heavy volume even as stocks and the high yield...

What's going on with high-yield? HYG is diving on heavy volume even as stocks and the high yield index mosey along, leaving the ETF trading well below intrinsic value. (via)
Comments (7)
  • vibod
    , contributor
    Comment (1) | Send Message
     
    today it went ex-dividend, no?
    31 May 2012, 03:42 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    I think that's tomorrow. This isn't an ex-divvie type of move.
    31 May 2012, 03:54 PM Reply Like
  • Storm Warning
    , contributor
    Comments (155) | Send Message
     
    Right. It's trading 3x normal volume and down much more than the payout.
    31 May 2012, 03:59 PM Reply Like
  • MexCom
    , contributor
    Comments (3051) | Send Message
     
    I've seen these declines before. I don't own HYG but 4 of the others. I've been on the buy side of DHF - thought they would decrease their payout as the reason but they announced yesterday that it would be unchanged at $.04. Go figure? I've bought these declines before and have done very well. Also bought some JNK today.
    31 May 2012, 04:19 PM Reply Like
  • Storm Warning
    , contributor
    Comments (155) | Send Message
     
    It makes sense that if you wanted to unload some HY funds, today would likely be the peak price day to do it. After the monthly payment comes out, odds are higher the price will be lower for a few days.
    31 May 2012, 04:33 PM Reply Like
  • godalmightee13
    , contributor
    Comments (467) | Send Message
     
    sounds feasible storm. So if there selling out of a High yielding stock,,,, where is the money going ????
    31 May 2012, 04:56 PM Reply Like
  • manhattan_trout
    , contributor
    Comments (4) | Send Message
     
    it's probably because of Ford rebalancing from high-yield to investment grade....
    1 Jun 2012, 03:06 AM Reply Like
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