iShares iBoxx $ High Yield Corporate Bond ETF(HYG)- NYSEARCA
  • Tue, Sep. 27, 12:37 PM
    • A change to the underlying index means the VanEck  Vectors Fallen Angel High Yield Bond ETF (NYSEARCA:ANGL) at month-end will shed 7.4% of the current portfolio.
    • The change: A bond will need to have at least $250M of outstanding paper versus $100M previously.
    • It's a "positive move" meant to enhance liquidity while having a "minimal impact" on potential performance, says ETF manager Meredith Larson.
    • ANGL has just 104 Seeking Alpher alert subscribers, but it's been a popular fund this year, pulling in $248M, or 75% of its current AUM total. The fund's returned 22% YTD versus 12% for HYG. The bonds to be eliminated account for about 1.3% of this year's total return.
    • The asset surge has inspired competitors like iShares' FALN.
    | Tue, Sep. 27, 12:37 PM
  • Tue, Sep. 13, 2:30 PM
    • August's dip in the junk bond default rate looks like just a temporary blip in trend as $3.8B in defaults have already been announced this month (most by energy companies).
    • Fitch's Eric Rosenthal thinks energy defaults could come to 16-18% by year-end - and that's assuming oil doesn't fall back into the low-$40s or $30s. Crude is down 2.7% today to $45.04 per barrel.
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, FHY
    | Tue, Sep. 13, 2:30 PM | 2 Comments
  • Thu, Sep. 1, 3:05 PM
    • Excepting the post-recession years of 2003 and 2009, high-yield is having its best year on record, says Goldman Sachs, with the magnitude of the spread tightening since the February 11 bottom exceeding the team's expectations.
    • Said spread tightening is responsible for 51% of the sector's YTD return, while coupon income was good for 31%, and lower rate 18%.
    • Spreads are currently at 588 basis points - already below Goldman's year-end forecast - so it's likely coupon income will have to be responsible for any returns from here to the end of 2016. The risk to the bank's spread forecast is "strongly skewed" to the upside.
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, FHY
    | Thu, Sep. 1, 3:05 PM | 2 Comments
  • Thu, Sep. 1, 12:11 PM
    • iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) of $0.2076. 30-Day Sec yield of 1.73%.
    • iShares Barclays 20 Year Treasury Bond Fund ETF (NYSEARCA:TLT) of $0.2542. 30-Day Sec yield of 2.04%.
    • iShares iBoxx $ High Yield Corporate Bond Fund ETF (NYSEARCA:HYG) of $0.3712. 30-Day Sec yield of 5.46%.
    • iShares S&P National Municipal Bond Fund ETF (NYSEARCA:MUB) of $0.2217. 30-Day Sec yield of 1.15%.
    • iShares iBoxx $ Investment Grade Corporate Bond Fund ETF (NYSEARCA:LQD) of $0.3198. 30-Day Sec yield of 2.85%.
    • iShares Barclays 1-3 Year Treasury Bond Fund ETF (NYSEARCA:SHY) of $0.0501. 30-Day Sec yield of 0.60%.
    • Payable Sept. 8; for shareholders of record Sept. 6; ex-div Sept. 1. 30-Day Sec yield as of 8/30/2016.
    | Thu, Sep. 1, 12:11 PM
  • Tue, Aug. 9, 11:10 AM
    • The global default rate for bonds rated below investment-grade rose to 4.7% in July, according to Moody's. That's up from 4.6% in June and compares to the long-term default rate of 4.2%.
    • The year-to-date tally of default hit 102 after 11 defaults in July - the highest monthly amount since 2009.
    • Moody's expects the default rate to peak at 5.1% in November, before sliding back to 3.9% by next July. For the U.S., the junk bond default rate was 5.5% at July's end, up from 5.2% in June. It's expected to peak at 6.3% by year-end.
    • In no surprise, it's the commodity sectors leading the way, with a 10% default rate forecast for metals & mining, and 7.2% for oil & gas issuers over the coming year.
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, FHY
    | Tue, Aug. 9, 11:10 AM | 3 Comments
  • Mon, Aug. 1, 12:55 PM
    • iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) of $0.2125. 30-Day Sec yield of 1.71%
    • iShares Barclays 20 Year Treasury Bond Fund ETF (NYSEARCA:TLT) of $0.2552. 30-Day Sec yield of 2.02%
    • iShares iBoxx $ High Yield Corporate Bond Fund ETF (NYSEARCA:HYG) of $0.3968. 30-Day Sec yield of 5.63%
    • iShares S&P National Municipal Bond Fund ETF (NYSEARCA:MUB) of $0.2118. 30-Day Sec yield of 1.14%.
    • iShares iBoxx $ Investment Grade Corporate Bond Fund ETF (NYSEARCA:LQD) of $0.3315. 30-Day Sec yield of 2.85%.
    • iShares Barclays 1-3 Year Treasury Bond Fund ETF (NYSEARCA:SHY) of $0.0504. 30-Day Sec yield of 0.53%.
    • Payable Aug. 5; for shareholders of record Aug. 3; ex-div Aug. 1. 30-Day Sec yield as of 7/28/2016.
    | Mon, Aug. 1, 12:55 PM | 3 Comments
  • 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
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