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Investors can't get enough high-yield, with yields moving to 3-year low

Oct. 23, 2017 10:33 AM ETHIX, PHT, JQC, HYG, JNK, CIK, EAD, HYLD, DHY, NHS, SJB, ACP, DSU, HYT, MCI, ANGL, KIOBy: Stephen Alpher, SA News Editor1 Comment
  • The Bloomberg Barclays High Yield Index closed last week at just a 330 basis point spread to Treasurys, with a yield-to-worst of 5.34%.
  • Probing further, BB credit spreads moved to a 10-year low, with yields at a four-year low. CCC spreads fell to three-year lows.
  • While there were $450M of cash outflows from retail funds, real money appetite for paper - the junkier the better - showed no signs of fading.
  • Energy, of course, makes for a nice chunk of high yield, and sentiment there is fairly strong as oil prices threaten to rise to the mid-$50s.
  • Source: Bloomberg's Gowri Gurumurthy
  • ETFs: HYG, JNK, DHY, HIX, PHT, HYLD, EAD, HYT, JQC, CIK, DSU, ACP, SJB, ANGL, NHS, MCI, KIO

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