Seeking Alpha
 

PowerShares Global Short Term High Yield Bond ETF (PGHY)

- NYSEARCA
  • Tue, Apr. 7, 1:09 PM
    • With the Fed threatening to take away the punch bowl, American companies have found a friend in the ECB, whose QE has made borrowing across the pond far less expensive than doing it here, writes Lisa Abramowicz.
    • Yields on investment-grade corporates in Europe have dipped all the way to 0.99% vs. 2.9% in the U.S., according to BAML. U.S. companies can save money even if they pay for expensive currency hedges. Consequently, roughly 65% of the record €60B of euro-denominated bonds sold in March (a record) came from overseas companies.
    • Junk-rated credits are also looking to the Continent, where yields on euro-denominated high-yield bonds of 4.3% are about 220 basis points lower than the States.
    • ETFs: HYG, JNK, LQD, HYLD, CORP, SJB, IHY, CRED, ANGL, HYLS, PGHY, UJB, HYXU, PICB, IBND, XOVR, QLTA, QLTC, IJNK, COBO, IGS, FCOR, CBND, QLTB, IGU, SUBD
    | 1 Comment
  • Mon, Feb. 9, 3:49 PM
    | 4 Comments
  • Mon, Feb. 2, 3:22 PM
    • In the wake of ECB's QE launch, more than €1B moved into European high-yield bond funds for the week ended Jan. 28. It's the largest weekly amount since JPMorgan began tracking the numbers in 2011 and stands against median inflows of €95M over the past four years.
    • European high-yield bonds have an average yield of 4.2%, according to Markit, compared with 1.2% for investment-grade paper.
    • “The global search for yield should prompt some investors to move down the credit quality spectrum into the noninvestment-grade market,” says one portfolio manager, summing up the conventional wisdom.
    • ETFs: IHY, GHYG, PGHY, HYXU, PICB, IBND, CRDT, IJNK, SUBD
    | 1 Comment
  • Fri, Jan. 23, 3:15 PM
    • Investors pulled $523M from global high-yield funds in the week ended Wednesday, according to EPFR Global, and pulled $868M from U.S. funds, bringing assets below $100B for the first time since Sept. 2013.
    • The exit occurs even as the ECB's QE is designed to push investors into riskier assets, so what gives? "The transmission of the monetary policy mechanism will be less effective" with yields already so low, said Ray Dalio at Davos. "We have a deflationary set of circumstances which makes it appealing to just stuff your money under a mattress."
    • ETFs: HYG, JNK, HYLD, SJB, IHY, ANGL, HYLS, PGHY, UJB, HYXU, XOVR, QLTC, IJNK
    | 1 Comment
  • Wed, Jan. 21, 8:40 AM
    • For years sovereign debt has been the globe's most-hated asset, but that title now goes to junk bonds, according to a Bloomberg poll. Of those surveyed, 18% - if given one asset class to short - would short high-yield. Least-favored shorts at just 3% and 4% respectively are G-7 currencies and real estate.
    • Searching for an after-the-fact reason: Slowing global growth makes it harder for the lowest-rated companies to pay their bills.
    • ETFs: HYG, JNK, HYLD, SJB, IHY, ANGL, HYLS, PGHY, UJB, HYXU, XOVR, QLTC, IJNK
    • As for the most-favored, it's developed market stocks, with 24% willing to go long if given the opportunity to buy just one asset class. Just 3% would choose junk bonds.
    | 1 Comment
  • Oct. 22, 2014, 1:12 PM
    • The high-yield market "rebounded spectacularly" between last Wednesday's panicky action and the start of this week, says Martin Fridson. If one were to annualize the 1.32% total return from this period, it would work out to a 160.9% gain.
    • Some more numbers: The average yield in the BAML high-yield index topped 6.4% last week, and has dropped back to 5.9%, bringing the spread to Treasurys down more than 50 bps to 4.5%.
    • Barron's Michael Aneiro continues to see value in a number of sizable closed-end funds still trading at around double-digit discounts to NAV, notably the BlakcRock Corporate High Yield Fund (HYT +1.2%), the AllianceBernstein Global High Income Fund (AWF +0.2%), and the Wells Fargo Advantage Income Opportunities Fund (EAD +0.7%).
    • ETFs: HYG, JNK, BKLN, HYLD, PHB, SJB, SRLN, SNLN, IHY, ANGL, HYLS, FTSL, HYXU, PGHY, UJB, XOVR, QLTC, IJNK
    | 3 Comments
  • Sep. 18, 2014, 3:43 PM
    | Comment!
  • Aug. 14, 2014, 6:28 PM
    • Junk bonds rebounded after shattering records last week with a $7.1B net outflow, as investors added $680M back into high-yield mutual funds and ETFs in the latest week, according to Lipper data.
    • Observers say sentiment changed in early August as institutional buyers stepped in hunting for bargains.
    • Example: Gulfport Energy (NASDAQ:GPOR) this week increased a $250M junk bond offering to $300M, giving it more cash to pay down its revolving credit line and for other general corporate purposes.
    • Also, a debut bond offering for XPO Logistics (NYSE:XPO) priced at par to yield 7.875%, at the issuer-friendly end of the original suggested 7.875%-8.125% range.
    • Many investors this year have expressed concerns that a pullback in junk bond prices could signal that market participants are rethinking their willingness to take risk, and the latest inflows could ease some of the concerns.
    • ETFs: HYD, JNK, HYLD, SJB, IHY, ANGL, HYLS, PGHY, HYXU, UJB, XOVR, QLTC, IJNK
    | 2 Comments
  • Aug. 11, 2014, 11:53 AM
    • The average yield has jumped to 5.77% today from 4.85% on June 24, and Barron's Michael Aneiro notes the two most popular ETFs - JNK and HYG - briefly traded at up to 2% discounts to NAV last week, though these disappeared pretty quickly.
    • Not disappearing - and in fact growing - are discount to NAVs in some high-yield closed-end funds, with many now trading at double-digit discounts. Among some of the larger funds, writes Aneiro, the BlackRock Corporate High Yield Fund (HYT +1.7%) trades at a 10.2% discount to NAV and the AllianceBernstein Global High Income Fund (AWF +0.8%) sells for a 9.9% discount. The Western Asset High Income Fund II (HIX +1.1%) offers a 2.7% discount.
    • ETFs: HYG, JNK, HYLD, SJB, IHY, ANGL, HYLS, PGHY, HYXU, UJB, XOVR, QLTC, IJNK
    | 2 Comments
  • Aug. 7, 2014, 7:12 PM
    • High-yield bond funds and ETFs totaled record outflows of $7.1B in the week ended Wednesday, Lipper reports, which shatters the previous record single-week outflow (set during the June 2013 bond-market swoon) of $4.6B.
    • It’s the fourth straight week of billion-dollar outflows, with an average outflow of $3.15B during the period; the full-year reading is now $5.9B in the red, with 43% of the withdrawal tied to ETFs.
    • Equity investors should care, Zero Hedge writes, because "bond managers are reaching desperately for protection in the CDS market - which is now at six-month wides - but in the end are forced to liquidate holdings as ETF flows dominate."
    • ETFs: HYD, JNK, HYLD, SJB, IHY, ANGL, HYLS, PGHY, HYXU, UJB, XOVR, QLTC, IJNK
    | 1 Comment
  • Jul. 25, 2014, 11:14 AM
    • Withdrawals from high-yield funds accelerate, hitting about $4.8B this week, according to EPFR Global - that's the 3rd largest weekly outflow since June of 2013.
    • Investment-grade funds, on the other hand, saw inflows of roughly $4.2B, their 31st consecutive week of inflows.
    • Jim Reid's Deutshce notes high-yield has been struggling this month, but no signs of stress have emerged. Indeed, the high-yield issuance market remains open for business, with another $1.3B priced just yesterday.
    • High-yield ETFs: HYG, JNK, HYLD, SJB, IHY, ANGL, HYLS, PGHY, HYXU, UJB, XOVR, QLTC, IJNK
    • IG ETFs: LQD, CORP, CRED, PICB, IBND, QLTA, COBO, IGS, CBND, IGU, SUBD, QLTB
    | 1 Comment
  • Apr. 23, 2014, 12:52 PM
    • In what may or may not end up being a bell-ringer of a deal, French cable company Numericable finalizes its record €7.9B junk bond offering, reportedly pricing the yield even lower than the initial whisper numbers. The size blows past the previous record - Sprint's $6.5B issuance last year.
    • This deal is spread over €2.25B of euro-denominated paper, $7.75B of dollar-denominated, and across three tranches of varying maturities.
    • RBS's Albert Gallo: “The new deal highlights strong growth in the European high-yield bond market, which has grown fivefold over the past five years to nearly €300B . . . Despite the strong supply, we expect European high-yield spreads to continue to tighten over the year, on recovering growth, easy ECB policy, stable fundamentals and low default rates.”
    • The proceeds are to be used to fund Altice's (Numericable's parent) purchase of Vivendi's telecoms business.
    • Previously: Largest junk-bond deal ever on tap
    • ETFs: HYG, JNK, HYLD, HYS, SJNK, PHB, SJB, HYHG, IHY, ANGL, HYXU, PGHY, HYLS, UJB, XOVR, THHY, YPRO, SHYG, QLTC, IJNK, HYND, HYZD
    | Comment!
  • Apr. 22, 2014, 2:57 PM
    • It may not be the peak, but it's a lot closer to the top than the bottom. Europe's lagging - compared to the U.S. - junk bond market is about to see a $11.6B sale by French cable company Numericable Group. It would be the largest junk-bond sale ever both in Europe and the States.
    • Numbericable is a subsidiary of Altice, which will be using the proceeds to fund its purchase of Vivendi's telecoms business SFR. The deal was originally supposed to consists of a €5.6B bank loan and a smaller offering, but the bank part has pulled back and the high-yield issuance grown.
    • ETFs: HYG, JNK, HYLD, HYS, SJNK, PHB, SJB, HYHG, IHY, ANGL, HYXU, PGHY, HYLS, UJB, XOVR, THHY, YPRO, SHYG, QLTC, IJNK, HYND, HYZD
    | Comment!
  • Apr. 8, 2014, 2:51 PM
    • "There are segments of the high-yield market that do not compensate you for the risk you are taking by owning them," says BlackRock portfolio manager Michael Fredericks. Average spreads to Treasurys have fallen to just 352 basis points, the lowest since prior to the financial crisis.
    • There's still value, insist some managers, you just have to know where to look. "The game has changed in the high-yield market and it has become more sophisticated than it was two or three years ago," says another fund manager. Barclays chief of credit strategy Brad Rogoff, for instance, is spotting value in the high-yield paper sold by mining and retail companies, as well as the dollar-denominated bonds sold by European companies. The so-called "yankees" are on average cheaper than the boarder market, he says.
    • Another option is that of emerging market high-yield debt, with average yields of 7.6% more than 200 basis points higher than that of U.S. paper.
    • Related ETFs: HYG, JNK, HYLD, HYS, SJNK, PHB, BSJF, SJB, BSJE, BSJG, HYHG, IHY, EMHY, HYEM, BSJI, HYXU, ANGL, PGHY, HYLS, XOVR, UJB, BSJH, THHY, IJNK, SHYG, QLTC, BSJK, HYZD, HYND, BSJJ
    | 2 Comments
  • Mar. 25, 2014, 5:39 AM
    • As expected, U.K. CPI has fallen further away from the Bank of England's 2% target, dropping to 1.7% on year in February from 1.9% in March.
    • "The largest contribution to the fall in the rate came from transport (principally motor fuels), with other smaller effects from the housing & household services and clothing & footwear sectors," the U.K. government says.
    • On month, CPI recovered to +0.5% from -0.6% and vs +0.5% consensus.
    • Core CPI +1.7% on year vs +1.6% and +1.6%. (PR)
    • Factory output prices (PPI) flat on month +0.3% and +0.2%. (PR)
    • The pound is flat at $1.6498, while the FTSE 100 is +1.1%.
    • ETFs: FXB, EWU, GBB, IHY, HYXU, EWUS, PGHY, FKU, DXPS, DBUK
    | Comment!
  • Mar. 12, 2014, 12:49 PM
    • Building on the success on the SPDR Barclays High Yield Bond ETF (JNK), State Street Global Advisors will roll out the SPDR Barclays International High Yield Bond ETF (IJNK) tomorrow.
    • Much like JNK, IJNK will track an index of high yielding corporate bonds, but with a focus on ex-U.S. global market.
    • This market sector is relatively under represented in the ETF universe and the addition of IJNK will round out SSgA's exposure to high yielding bonds.
    • Other high yielding global corporate bond ETFs: IHY, HYXU, PGHY
    | Comment!
Visit Seeking Alpha's
PGHY vs. ETF Alternatives
PGHY Description
The Global Short Term High Yield Bond Portfolio (Fund) is based on the DB Global Short Maturity High Yield Bond Index (Index). The Fund generally will invest at least 80% of its total assets in US and foreign short-term, non-investment grade bonds included in the Index, all of which are denominated in US dollars. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective. The Fund and the Index are rebalanced quarterly and re-weighted annually.
See more details on sponsor's website
ETF Hub
Find the right ETFs for your portfolio: Visit Seeking Alpha's ETF Hub