BTC iShares iBoxx USD High Yield Corporate Bond ETF

Investors should note that high-yield bonds are risky securities to begin with. The add-on risk of widening spreads may not suit all types of investors.

Junk bond issuance activity rose in the week ending August 7 after two weeks of subdued activity. The broad market conditions improved.

With interest rates likely to go up by the end of the year, TIPS with shorter maturities look more attractive.

There are no free lunches. The risks involved in fixed income investing are two-fold.

Corporate bonds, especially high yield corporate bonds, correlate to equities and hence, so they don’t provide great diversification benefits.

High yield bonds (HYG), which are usually issued by mid- and small-cap companies, are considered riskier than investment grade corporate bonds.

DaVita HealthCare Partners (DVA) and Tenet Healthcare (THC) were among the more prominent HY debt issuers in the week ending June 13.

Masayoshi Son, Chairman and CEO of SoftBank Corp. (SFTBF) and chairman of Sprint (S), has been pushing for more consolidation in the telecom sector in the U.S.

XLY and XRT have performed better in terms of absolute returns over longer periods of three and five years

During economic uncertainty, investors want steady, guaranteed returns from the Treasury instead of quick returns from price movements in equity ETFs.