iShares iBoxx $ High Yield Corporate Bond ETF (HYG) - NYSEARCA
  • Fri, Jul. 22, 3:23 PM
    • High-yield has had a major rally this year, but investors are cooling their appetite for junky paper, writes Lisa Abramowicz. To wit: U.S. Xpress Enterprises scrapped a $320M offering earlier this week as investors demanded higher rates for the trucking company than it was willing to pay.
    • It was the first pulled high-yield deal in two months.
    • Alongside this year's rally is a growing speculative-grade default rate - calculated by Moody's at 5.4% this year vs. 2.1% a year ago. Most of this, of course, can be attributed to the commodity sector, particularly energy.
    • Things could go beyond oil and gas though. Noting weakening corporate earnings, a team from UBS has boosted its view of the odds of a U.S. recession, which would likely push that default rate even higher, thus making losers of many high-yield investment strategies.
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK
    | Fri, Jul. 22, 3:23 PM | 3 Comments
  • Tue, Jul. 19, 2:54 PM
    • For the month of June, the option-adjusted spread on the BAML High Yield Index widened to 621 bps from 597 bps. In the rally since, it tightened all the way to 542 bps.
    • By the fair value estimate of Fridson and team, high-yield was overvalued by 166 bps on June 30 - more than the one standard deviation (126 bps) by which they define extreme overvaluation. By July 15, it was a more staggering 245 bps - nearly two standard deviations from fair value.
    • Source: Amey Stone in Barron's
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY
    | Tue, Jul. 19, 2:54 PM | 10 Comments
  • Fri, Jul. 15, 3:28 PM
    • "They’re out there scrounging through the dumpster looking for yield,” says one strategist. "When you have artificially low rates, you force people to go out and look for things that they normally wouldn’t.”
    • High-yield mutual funds flew off the shelves this week, with $4.35B in deposits - the largest in more than four months. Looking at individual issues, a $375M bond sold by Valvoline drew $4.5B in orders, allowing the issuer to cut the yield on the offering by as much as 50 basis points.
    • With $12T of bonds globally offering a negative yield, what's an investor to do?
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, FHY, MCI, KIO
    | Fri, Jul. 15, 3:28 PM | 3 Comments
  • Fri, Jul. 1, 12:35 PM
    • iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) of $0.2125. 30-Day Sec yield of 1.82%.
    • iShares Barclays 20 Year Treasury Bond Fund ETF (NYSEARCA:TLT) of $0.2552. 30-Day Sec yield of 2.16%.
    • iShares iBoxx $ High Yield Corporate Bond Fund ETF (NYSEARCA:HYG) of $0.3968. 30-Day Sec yield of 6.36%.
    • iShares S&P National Municipal Bond Fund ETF (NYSEARCA:MUB) of $0.2118. 30-Day Sec yield of 1.22%.
    • iShares iBoxx $ Investment Grade Corporate Bond Fund ETF (NYSEARCA:LQD) of $0.3315. 30-Day Sec yield of 3.05%.
    • iShares Barclays 1-3 Year Treasury Bond Fund ETF (NYSEARCA:SHY) of $0.0504. 30-Day Sec yield of 0.60%.
    • All are payable July 8; for shareholders of record July 6; ex-div July 1. 30-Day Sec yield as of 6/29/2016.
    | Fri, Jul. 1, 12:35 PM
  • Tue, Jun. 28, 1:30 PM
    • The iShares High Yield Corporate Bond ETF (NYSEARCA:HYG) saw $291M of inflows during Friday's market panic, according to Bloomberg. That brought weekly inflows for the fund up to a whopping $1.5B - the most this year.
    • With a Fed hike being completely price out this year (and some now betting on a rate cut), much of that money is from yield-chasing investors, says a BlackRock fixed-income strategist.
    • The rush of money wasn't able to stem falling junk bond prices over the past couple of sessions. They've rebounded today (HYG is higher by 0.95%), but remain well below last Thursday's closing levels.
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU
    | Tue, Jun. 28, 1:30 PM | 3 Comments
  • Tue, Jun. 21, 2:56 PM
    • Covenant quality tumbled to 4.56 in May from 3.8 the previous month, according to Moody's, which rates on a one-to-five scale, with five being the worst. It was the largest single-month change on record.
    • Marty Fridson calls the plunge "a discouraging setback," but notes it could be due to the large amount of higher-rated junk issued in May - those high-yield bonds with stronger ratings tend to have easier covenants than the really junky stuff.
    • More from Fridson: "The long-run trend of covenant quality since the 2011 inception of the Moody’s series has been dismayingly negative. That tendency has been abetted by the investment banks, which compete for underwriting mandates partly on the basis of devising new loopholes."
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, MCI, FHY, KIO, ARDC, ANGL, VLT, CIF, AIF, MPV, MHY, PCF, IVH, DHG, HYLS, JSD, UJB, GGM, CJNK, QLTC, HYIH, WFHY
    | Tue, Jun. 21, 2:56 PM | 5 Comments
  • Fri, Jun. 17, 8:12 AM
    • The $193M VanEck Vectors Fallen Angel High Yield Bond ETF (NYSEARCA:ANGL) has been a popular one in a year with plenty of fallen angels, taking in $125M of new assets in 2016 and returning 14.3% YTD vs. 5.6% for the HYG.
    • Taking aim at that is the new iShares Fallen Angels USD Bond ETF (NASDAQ:FALN), with a fee of 0.35% vs. 0.4% for ANGL.
    • Separately, iShares launches its High Yield ex Oil & Gas Corporate Bond ETF (HYXE), which removes the roughly 10% exposure to oil and gas companies in the HYG.
    | Fri, Jun. 17, 8:12 AM | 1 Comment
  • Wed, Jun. 1, 12:44 PM
    • iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) of $0.2182. 30-Day Sec yield of 1.95%
    • iShares Barclays 20 Year Treasury Bond Fund ETF (NYSEARCA:TLT) of $0.2673. 30-Day Sec yield of 2.44%
    • iShares iBoxx $ High Yield Corporate Bond Fund ETF (NYSEARCA:HYG) of $0.4016. 30-Day Sec yield of 6.61%
    • iShares S&P National Municipal Bond Fund ETF (NYSEARCA:MUB) of $0.2052. 30-Day Sec yield of 1.31%
    • iShares iBoxx $ Investment Grade Corporate Bond Fund ETF (NYSEARCA:LQD) of $0.3341. 30-Day Sec yield of 3.20%
    • iShares Barclays 1-3 Year Treasury Bond Fund ETF (NYSEARCA:SHY) of $0.0506. 30-Day Sec yield of 0.66%.
    • Payable June 7; for shareholders of record June 3; ex-div June 1. 30-Day Sec yield as of 5/27/2016.
    | Wed, Jun. 1, 12:44 PM
  • Wed, May 25, 1:27 PM
    | Wed, May 25, 1:27 PM | 13 Comments
  • Wed, May 18, 11:52 AM
    • The recovery rate for high-yield bonds has been a super-low 13.9% thus far this year, according to Marty Fridson, continuing a trend begun last year when the recovery rate fell to 34%.
    • Source: Barron's
    • It's curious given the low default rate - just 2.83% in 2015 vs. the long-term average of 3.33%. Usually low default rates mean high recovery rates.
    • Fridson: "This outcome has generated anxiety among high-yield portfolio managers. Has some structural change taken place, they wonder, such that investors should expect lower average recovery rates over the remainder of the present credit cycle than in the past?"
    • Answering his own question, Fridson says special conditions associated with the energy crash along with one large, non-energy defaulter are behind the low recovery rate. For now, there's no clear evidence that recoveries on a more general basis are lower than they should be.
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, MCI, FHY, KIO, ARDC, ANGL, VLT, CIF, AIF, MPV, MHY, PCF, IVH, DHG, HYLS, JSD, UJB, GGM, CJNK, QLTC, HYIH
    | Wed, May 18, 11:52 AM | 8 Comments
  • Tue, May 17, 12:04 PM
    • Beginning June 13, the fund giant's flagship Total Return Fund (MUTF:PTTRX) will be allowed to invest up to 20% of its assets in junk bonds, up from 10% currently.
    • At the moment, Total Return has just a 2.5% allocation to high-yield, so taking it up to 20% would be quite the move. The junk bond market, says CIO Mark Kiesel, "is as attractive as it's been in four or five years."
    • Though high-yield has had a monster rally since Feb. 11, it's still at sharply lower levels than one or two years ago, and Bloomberg's Nir Kaissar reminds that though Total Return is a bond fund, it's never shied from taking risks  - whether under Bill Gross, or under current management.
    • Returns of late have suffered - the fund has returned 2.7% annually since Gross left vs. the Barclays Aggregate Bond Index return of 3.7%. AUM has suffered as well - down more than two-thirds from an April 2013 peak of nearly $300B to just $87B today.
    • Kaissar: "A renaissance for the Total Return Fund has to start with better performance, and one way to juice returns is to pile on more risk."
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK
    | Tue, May 17, 12:04 PM | 8 Comments
  • Fri, May 13, 11:33 AM
    • A bet on U.S. junk bonds has been a big winner this year, with HYG and JNK easily outpacing broader fixed-income benchmarks, writes Ben Eisen, not to mention the S&P 500.
    • But one particular sector of high-yield has performed particularly well, and that's fallen angels - formerly investment-grade paper which has been downgraded to junk. The VanEck Vectors Fallen Angel High Yield Bond ETF (NYSEARCA:ANGL) is up 10% this year, including 13% in the last three months.
    • The thinking is pretty clear: Sentiment turns overly negative, pushing prices lower, and this goes on for awhile. Ratings agencies are the last to know, and when they finally downgrade to junk status, many funds automatically get out, forcing a final plunge in price. That's where the fallen angel investors step in.
    | Fri, May 13, 11:33 AM | 2 Comments
  • Tue, May 10, 11:37 AM
    • Moody's now expects global speculative-grade defaults to hit 5% by the end of November - that's up from 4.6% forecast one month ago, and 3.8% prior to that.
    • Perhaps looking in the rearview mirror as it drives, the agency takes note of the oil price slump as continuing to put upward pressure on defaults. Being at least a tiny bit forward-looking, Moody's at least mentions tighter credit spreads of late as perhaps suggesting the default rate could taper.
    • Of 46 defaults recorded in the year's first four months, 18 were in oil and gas, and 9 in metals and mining.
    • In the U.S. the default rate for metals and mining companies is expected to rise to 11.5%; and for oil and gas to 10.3%.
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, MCI, FHY, KIO, ARDC, ANGL, VLT, CIF, AIF, MPV, MHY, PCF, IVH, DHG, HYLS, JSD, UJB, GGM, CJNK, QLTC, HYIH
    | Tue, May 10, 11:37 AM | 1 Comment
  • Fri, May 6, 10:38 AM
    • Until now, there's been little sign that commodity-related weakness was hurting the broader junk bond market, but that's changing, says Moody's John Puchalla, noting an increase in investor risk aversion and rising borrowing costs.
    • Moody's now expects the default rate for oil and gas companies to rise to 6% by year-end (from its current 4.1%), which would be the highest level since July 2010.
    • “Our default risk indicators continue to weaken, warning that the existing upward default pressure will increase if the U.S. economy falters and investor risk aversion grows."
    • The junk-bond market, of course, has had a monster rally since February 11, but has stumbled thus far in May. HYG and JNK are lower by 0.3% this morning.
    | Fri, May 6, 10:38 AM | 5 Comments
  • Thu, May 5, 2:39 PM
    • The iShares iBoxx High Yield Corporate Bond ETF (NYSEARCA:HYG) has seen about $2.6B redeemed over the past four days, according to Bloomberg. It's the biggest string of losses since the market bottomed on Feb. 11, and comes after a 12%-plus rally since.
    • That particular ETF has just over $15B in assets. Its nearest competitor, the SPDR Barclays High Yield Bond ETF (NYSEARCA:JNK) has $12.5B in AUM and has seen redemptions of just $245M in the past week.
    • While some will point to the withdrawal as a bell being rung for the top, Peter Tchir says the move could be from an institutional investor taking money out of the fund to get a piece of a new issue, or put money to work in less-liquid vehicles.
    | Thu, May 5, 2:39 PM | 4 Comments
  • Mon, May 2, 2:06 PM
    • iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) of $0.2052. 30-Day Sec yield of 1.91%
    • iShares Barclays 20 Year Treasury Bond Fund ETF (NYSEARCA:TLT) of $0.2602. 30-Day Sec yield of 2.47%
    • iShares iBoxx $ High Yield Corporate Bond Fund ETF (NYSEARCA:HYG) of $0.3819. 30-Day Sec yield of 6.51%
    • iShares S&P National Municipal Bond Fund ETF (NYSEARCA:MUB) of $0.2005. 30-Day Sec yield of 1.35%
    • iShares iBoxx $ Investment Grade Corporate Bond Fund ETF (NYSEARCA:LQD) of $0.3247. 30-Day Sec yield of 3.16%
    • iShares Barclays 1-3 Year Treasury Bond Fund ETF (NYSEARCA:SHY) of $0.0490. 30-Day Sec yield of 0.63% .
    • All are payable May 6; for shareholders of record May 4; ex-div May 2. 30-Day Sec yield as of 4/28/2016.
    | Mon, May 2, 2:06 PM
HYG Description
The iShares iBoxx $ High Yield Corporate Bond Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the iBoxx $ Liquid High Yield Index, a corporate bond market index compiled by the International Index Company Limited.
See more details on sponsor's website
Country: United States
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