iShares Intermediate Credit Bond
Investment-Grade Bond Funds Saw Inflows Last Week
Flows into investment-grade bond funds were positive last week. Investment-grade bond funds saw net inflows of $907.1 million during the week ending July 6.
The difference between High Yield Bond ETFs and Investment Grade Bond ETFs
The corporate bond market is divided into two broad categories: the high grade market and the high yield market.
The default rate and its relation to bond and loan prices
Default rate is a key metric of credit risk and is defined as the risk that the counterparty will default on its financial obligations.
Must know: How credit rating affects default rate and bond price
A lower credit rating means higher risk, and therefore, higher yield as investors look for the premium to take the risk and vice versa.
Key differences between high yield and investment-grade bonds
Investment-grade corporate bonds (LQD) carry inferior yields compared to high yield bonds (JNK) with the same maturity date.
A Pass on a November Hike: It’s Up to December Now
The expected occurred on November 2, 2016, when the FOMC (Federal Open Market Committee) left the federal funds rate unchanged at 0.25%–0.5%.
Why the Spike in Demand for Investment-Grade Corporate Bonds?
The demand for US investment-grade corporate bonds was driven by higher yields generated by bonds in the midst of low interest rates.
Why Is ‘Carry’ Compressed in Financial Markets?
In his investment outlook for June 2016, Bill Gross asserted that “carry” is compressed in nearly every form. It has more risk than return.
Bill Gross Talks about Compressed ‘Carry’ in Financial Markets
In his latest monthly investment outlook for June 2016, bond market veteran Bill Gross talked about “carry” in financial markets.
Recommendation: Key high yield and investment-grade bond ETFs
Some well known high yield bond ETFs include the iShares iBoxx $ High Yield Corporate Bond (HYG), the SPDR Barclays Capital High Yield Bond ETF (JNK), and the PowerShares High Yield Corporate Bond (PHB).