Seeking Alpha
  • Christian Hviid
    HY bonds pricing ca. 6.7% default rate. Par-weighted DR has been running 1.2%. This spells opportunity (I am long HYG as of this posting).
    10/21/11
    Reply (3)
    • User 714683: JNK at 34 was an opportunity. Long HYG as well.
      10/21/11
    • Christian Hviid: Assuming bad case scenario of 4% defaults you are still looking at ca. 605bps spread vs. current 795bps. With 4.4 duration the math works.
      10/21/11
    • *Hysteria: HY works unless you funded the investment from equities...bc if equities go up 20%...HY will lag
      10/22/11