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SPDR Barclays Capital High Yield Bond ETF (JNK)

- NYSEARCA
  • Thu, Mar. 26, 8:14 AM
    • Investment-grade and junk-rated companies combined have sold $438B of new bonds YTD, according to Dealogic, topping the previous record of $384B in 2013. Bond sales related to M&A of $87B are also at a record YTD.
    • Corporate treasurers no doubt are pushing out as much debt as possible to take advantage of low rates, but they're finding plenty of willing buyers.
    • “I can’t see anything on the radar that’s going to slow things down materially,” says one fixed-income manager.
    • ETFs: HYG, JNK, LQD, HYLD, CORP, SJB, CRED, ANGL, HYLS, UJB, XOVR, QLTA, QLTC, COBO, IGS, CBND, FCOR, QLTB, IGU
    | 1 Comment
  • Mon, Mar. 23, 3:34 PM
    • Fixed-income posted big gains last week after the Fed walked back expectations for rate hikes, but investors continued to pull money from high-yield funds - $1.3B last week, bringing March's total to $2.9B.
    • While a gradually strengthening economy combined with ZIRP or something close to it should be a good environment for junk bonds, much of the paper is energy related and the crash in the oil price is trumping the other factors.
    • Even after last week's rally, dollar-denominated high-yield debt is lower by about 1% for March after February's 2.4% gain.
    • ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
    | 2 Comments
  • Tue, Mar. 17, 12:25 PM
    • Junk-grade defaults rose twenty basis points to 2.3% in February, according to Moody's, which one year ago expected the rate to be 2.6% by this time.
    • Moody's sees the rate ticking higher to 2.5% by the end of the year - still well below the historical average of 4.5%.
    • ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
    | 1 Comment
  • Mon, Mar. 2, 1:42 PM
    • SPDR Barclays High Yield Bond (NYSEARCA:JNK) announces monthly distribution of $0.189.
    • 30-Day Sec yield of 5.60% (as of 2/26/2015).
    • Payable Mar 10; for shareholders of record Mar 4; ex-div Mar 2.
    | 1 Comment
  • Wed, Feb. 11, 11:26 AM
    • There's $791B of high-yield debt coming due in the next five years, according to Moody's, raising at least some concern as most expect interest rates to be anywhere from slightly to significantly higher.
    • The projections are the highest since 2010, when Moody's said companies faced $1.2T in debt coming due. Things worked out all right for that wave as borrowers were able to refinance, usually at far lower interest rates. This time around, the Fed and ZIRP may not be around to help.
    • ETFs: HYG, JNK, BKLN, HYLD, SJB, SRLN, SNLN, ANGL, HYLS, FTSL, UJB, XOVR, QLTC
    | 3 Comments
  • Mon, Feb. 9, 3:49 PM
    | 4 Comments
  • Tue, Feb. 3, 3:44 PM
    • Lower interest rates hadn't really helped one of income players' favorite sectors as they were accompanied by the plunge in oil prices, and worry about what blowups were lurking in BDC portfolios.
    • So even with the 10-year Treasury yield higher by 11 basis points to 1.78% today, oil's now more than 20% run higher in the past few sessions looks to be easing some of those credit concerns, and alongside the rally in BDCs is a nice move higher in junk bonds (HYG +0.6%), (JNK +0.6%).
    • BDC ETFs: BDCL, BDCS, BIZD
    • Individual names: Prospect Capital (PSEC +2.3%), Fifth Street Finance (FSC +3%), FS Investment (FSIC +1.6%), Main Street Capital (MAIN +2.4%), Apollo Investment (AINV +3%), Triangle Capital (TCAP +2.7%), TICC Capital (TICC +3%), PennantPark Investment (PNNT +3.8%), THL Credit (TCRD +3.5%), Golub Capital (GBDC +1.9%).
    | 18 Comments
  • Mon, Feb. 2, 3:40 PM
    • SPDR Barclays High Yield Bond (NYSEARCA:JNK) announces monthly distribution of $0.183.
    • 30-Day Sec yield of 6.10% (as of 1/29/2015).
    • Payable Feb 10; for shareholders of record Feb 4; ex-div Feb 2.
    | 2 Comments
  • Tue, Jan. 27, 1:02 PM
    • After first sweetening terms to try and attract buyers, Apollo Global yesterday pulled a $400M deal meant to help fund its purchase of Presidio Holdings. And Apollo isn't alone. "Anything with a little bit of hair on it is more challenged," says Pimco's Jason Rosiak. "People are being more selective."
    • Outflows from high-yield funds began about nine months ago, and accelerated last week, with $738M in net redemptions bringing the year's total to $1.7B, according to Lipper.
    • Into this environment, Dollar Tree is trying to raise money for its $8.81B takeover of Family Dollar, and PetSmart needs $1.9B of bridge financing to close its BC Partners purchase.
    • "It's going to be a buyer's market," says one fund manager. "We’ll continue to see a bit of a premium.”
    • ETFs: HYG, JNK, BKLN, HYLD, SJB, SRLN, SNLN, ANGL, HYLS, FTSL, UJB, XOVR, QLTC
    | 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
  • Tue, Jan. 6, 3:22 PM
    • "The market has thrown the baby out with the bathwater," says Mike Lillard, CIO of Prudential Fixed Income as company executives got together to discuss their 2015 outlook. "If he economy is fine ... you're going to see issues in the energy sector, but not overall."
    • The energy rout has spilled over in a big way to junk bonds (energy debt makes up about one-seventh of the junk market), where yields have climbed about 170 basis points since June.
    • For every struggle in energy, consumer-oriented businesses should benefit, reminds Lillard, and he's not seeing a wave of defaults coming to high-yield.
    • “The overwhelmingly positive impact of oil prices overall will be strong enough to offset pockets of trouble,” says Ed Keon, portfolio manager at Prudential’s Quantitative Management Associates. “It’s not going to turn out to be a beginning of a chain of events.”
    • ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
    | Comment!
  • Dec. 29, 2014, 1:58 PM
    • SPDR Barclays High Yield Bond (NYSEARCA:JNK) announces monthly distribution of $0.185.
    • 30-Day Sec yield of 6.12% (as of 12/24/2014).
    • Payable Jan 7; for shareholders of record Dec 31; ex-Div. Dec 29.
    | 1 Comment
  • Dec. 19, 2014, 2:52 PM
    • It's the third straight week of outflows, and the amounts are growing, with $3.1B pulled from high-yield mutual funds and ETFs in the week ended Dec. 18, according to Lipper. That's up from $1.9B the previous week, and $859M the week before that.
    • It's just a guess, but the inflows could be set to slow considerably as the high-yield market has roared back along with stocks late this week. The rally has brought the BAML index back into positive territory for the year as well.
    • Today: HYG +0.8%, JNK +0.75%
    • ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
    | 1 Comment
  • Dec. 17, 2014, 3:41 PM
    • Popular high-yield ETFs HYG and JNK are each ahead by 2% in today's session as the energy sector - which makes up a sizable portion of the high-yield universe posts a strong rally, with the XLE higher by 4.1%.
    • BDCs can sort of be considered the equity equivalents of junk bonds, and they're putting in a big rally today as well.
    • Prospect Capital (PSEC +1.5%), Main Street (MAIN +4.1%), Blackrock Kelso (BKCC +2.4%), Triangle Capital (TCAP +6.4%), KCAP Financial (KCAP +2.6%), THL Credit (TCRD +3.5%), Medley Capital (MCC +2.2%), Fifth Street Finance (FSC +1.5%)
    • ETFs: BDCL, BDCS, BIZD
    | 20 Comments
  • Dec. 16, 2014, 3:12 PM
    • BMO Private Bank CIO Jack Ablin likes to gauge investor sentiment by looking at closed-end funds, particularly the gulf between price and net asset value.
    • As far as high-yield goes, the ten largest junk CEFs are currently trading at an 11% median discount, reflecting some level of concern, but nowhere near the panicky 30% discount at the height of the financial crisis.
    • Fair enough, says Barron's Chris Dieterich, but that 11% discount is still the widest since 2009, and far greater than the spread seen during 2013's "taper tantrum," or during the volatile time after S&P downgrade the U.S. in 2011. Unless the gulf is a sign of worse things to come, now just might be the time to go shopping for high-yield.
    • ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
    | 2 Comments
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JNK Description
The SPDR® Barclays Capital High Yield Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital High Yield Very Liquid Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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