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SPDR Barclays Capital High Yield Bond ETF (JNK)

- NYSEARCA
  • Mon, Apr. 20, 9:21 AM
    • Nobody really talks about it much, says Jeff Gundlach, but the junk-bond market's entire life has been spent in a time of secularly declining interest rates. Exactly how with these assets react once that move ends?
    • There's no need to sell today, says Gundlach, as the crisis he envisions is at least a couple of years away, when increasing interest rates collide with a wave of maturing paper needing to be refinanced. For now, stick with the "carry trade" of owning high-yield bonds.
    • ETFs: HYG, JNK, HYLD, HYS, SJNK, SJB, BSJF, ANGL, BSJG, HYHG, BSJI, HYLS, UJB, WYDE, XOVR, BSJH, HYZD, THHY, QLTC, SHYG, BSJJ, HYND, HYGH, BSJK, TYTE, BSJM, BSJL
    | 6 Comments
  • Thu, Apr. 9, 12:17 PM
    • Currently yield-starved investors in high-yield might find their hunger satiated elsewhere if benchmark interest rates rise, says S&P, meaning junk issuers will have to find other buyers or slow down borrowing.
    • Also weighing against high-yield borrowers are fundamentals, writes Amey Stone: The stronger dollar is crimping exports, thus causing revenue and profit margin pressure.
    • ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
    | 2 Comments
  • 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
  • Wed, Apr. 1, 12:49 PM
    • SPDR Barclays High Yield Bond (NYSEARCA:JNK) announces monthly distribution of $0.189.
    • 30-Day Sec yield of 5.74% (as of 3/30/2015).
    • Payable Apr 10; for shareholders of record Apr 6; ex-div Apr 1.
    | 2 Comments
  • Tue, Mar. 31, 11:25 AM
    • “Companies value secrecy and don’t want people doing analysis," says Martin Fridson. "The more they can keep investors in the dark the better it’s been for them.”
    • More than 55% of speculative-grade debt sold this year was through deals known as private placements for life (144a-for-life) - thus requiring no public registration, according to S&P Capital IQ. That's up from 40% last year - a record until now.
    • Fridson: “Deals are getting worse and worse for the investor, and they have been powerless to stop it ... The only winners are issuers and their underwriters."
    • Source: Bloomberg
    • Meanwhile, junk has risen back to the top of the fixed-income heap, returning 2.5% in Q1, topping investment-grade, muni, and U.S. government debt.
    • ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
    | 4 Comments
  • 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%).
    | 19 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
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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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