SPDR® Barclays High Yield Bond ETF

Most Recent

  • Why tight credit spreads usually mean a period of global expansion
    Financials

    Why tight credit spreads usually mean a period of global expansion

    Today, most measures of credit conditions are positive, with tight spreads across all of fixed income. Even high yield spreads have come in after a short scare last month.

    By Russ Koesterich, CFA
  • Financials

    Rate hike horizon: September’s jobs report was largely positive

    After September’s strong jobs numbers, a Fed rate hike could be on the horizon early next year. Russ explains two equity market implications.

    By Russ Koesterich, CFA
  • uploads///US High Yield Bond Fund Flows
    Company & Industry Overviews

    High-Yield Bond Funds Saw Large Inflows, Yields and Spreads Fell

    Investor flows into high-yield bond funds were positive for the week ended July 6, 2016, after three consecutive weeks of negative outflows.

    By Lynn Noah
  • uploads///US High Yield Bond Fund Flows
    Company & Industry Overviews

    High Yield Bond Funds Witness Inflows in the Week to May 22

    Investor flows in high yield bond funds turned positive last week. Net inflows totaled $906 million in the week ended May 22.

    By David Ashworth
  • Financials

    Must-know: Why refinancing remains the focus for leveraged loans

    Unlike the previous week, last week, issuers swarmed the market with repricing deals. Nearly half of the deals were refinancing.

    By Sandra Nathanson
  • uploads///Unemployment rate continues to fall
    Macroeconomic Analysis

    Why young investors are keeping cash under the mattress

    Not only are young individuals scared of investing in equities, they’re also hoarding cash under the mattress in case a similar crisis should reoccur.

    By BlackRock-iShares-ETFs
  • Financials

    Why last week was again positive for the leveraged loan market

    A bullish week Last week was yet another bullish week for the leveraged loan market. A total of 12 deals priced almost $13 billion worth of leveraged loans (BKLN). Extremely robust pipeline The forward pipeline stood at just over $50 billion at the close of last week. This level is the second highest since last […]

    By Dale A. Norton
  • uploads///high yield muni bonds
    Company & Industry Overviews

    Muni Bond Investment Opportunities in the Current Environment

    BUTCHER: Thank you. Do you see any specific opportunities today? COLBY: I think there are two fairly distinct opportunities for investors to consider. One is based on interest rates and interest rate outlooks. The other is based on risk that investors might be willing to assume on a credit basis. From an interest rate perspective, […]

    By VanEck
  • uploads///CHina debt to GDP
    Fund Managers

    Gross Recommends Avoiding High-Risk Markets and Staying Vanilla

    In the current market environment, Bill Gross recommends staying plain vanilla. His advice is to avoid high-risk markets.

    By Surbhi Jain
  • uploads///US High Yield Bond Fund Flows
    Company & Industry Overviews

    Outflows in High Yield Bond Funds Slow Down

    Net inflows in high yield bond mutual funds were negative for the second time in eight weeks. Net outflows totaled $1.0 billion in the week ended March 20.

    By David Ashworth
  • Energy & Utilities

    Why issuers stayed away from high-yield debt markets

    Issuance slowed to a trickle when market conditions were unfavorable in August. A number of transactions were either postponed, re-priced, or withdrawn from the market altogether. There was an increase in high-yield debt risk perceptions.

    By Phalguni Soni
  • uploads///US Leveraged Loan Market Volumes
    Company & Industry Overviews

    Issuers Return to the Leveraged Loan Primary Market

    AlixPartners provides financial advisory and business services. It issued leveraged loans worth $1.1 billion last week. The B2/B+ rated covenant-lite Term Loan B was issued for seven years.

    By David Ashworth
  • Financials

    The Fed starts monetary tightening: What’s next for junk bonds?

    Key implications of the Fed’s QE3 exit for junk bonds and leveraged loans The Fed’s policy statement at the end of its October Federal Open Market Committee (or FOMC) last week stressed the improving economy. In a first, it also mentioned that measures of labor market slack had reduced. The risk of inflation falling persistently […]

    By Phalguni Soni
  • uploads///Treasury yields continue to be on the lower side
    Macroeconomic Analysis

    Why wage growth could cause rates to rise

    Wage growth could cause rates to rise. A hike in wage rates could boost consumption and encourage individuals outside the labor force to join. This will increase disposable income.

    By Russ Koesterich, CFA
  • Energy & Utilities

    Why smaller oil and gas firms are foraying into high yield debt

    High yield debt markets saw $6 billion worth of new supply issued across 12 transactions in the week ending October 24.

    By Phalguni Soni
  • Financials

    Why frontier markets are good diversifiers for your portfolio

    Diversification: Finally, companies in frontier markets tend to just focus on demand in their local countries and thus are less tied to the global economy than emerging markets like China and Brazil. As my colleagues Del Stafford and Daniel Morillo pointed out last fall in blog posts, this means frontier markets have exhibited a low […]

    By Russ Koesterich, CFA
  • Financials

    Must-know: Mid-cap companies that issued high-yield debt lately

    AECOM Technology (ACM) is an engineering and construction company. It had the week’s largest issue. ACM plans to use the proceeds from the issue to repay existing debt.

    By Phalguni Soni
  • uploads///LL Issuance
    Consumer

    Must-know leveraged loan update: Issuance increased last week

    The primary loan market remained busy with opportunistic issuers coming in to test the investor’s interest for floating interest rate loans.

    By Sandra Nathanson
  • uploads///High Yield Bond Yields and Spreads
    Fund Managers

    Carl Icahn’s Take on BlackRock and Other High-Yield Issuers

    Carl Icahn has stated that “BlackRock is an extremely dangerous company,” as it doesn’t understand the risks of its actions.

    By Surbhi Jain
  • uploads///Chart
    Company & Industry Overviews

    High Yield Still Has a Place in Most Portfolios

    The three-month Volatility Index (or VIX), which measures the implied volatility of options on the S&P 500 stock market index, is approaching record lows.

    By Russ Koesterich, CFA
  • Financials

    Labor Day barbecues, beaches, and bonds: Why it’s all about balance

    If you’re Matt Tucker, everything reminds you of investing, even the last barbecue of the summer. Read on to discover how your bond portfolio may very well resemble a Labor Day mixed grill.

    By Matt Tucker, CFA
  • uploads///global nominal gdp
    Fund Managers

    Gundlach: Buy India, Short Other Emerging Markets

    Lack of growth in major emerging markets has contributed to the commodity price slide. Gundlach stated, “Emerging markets might fall an additional 40% — my recommendation would be to short them.”

    By Surbhi Jain
  • uploads///High Yield Bonds Appear Attractive
    Macroeconomic Analysis

    High Yield Offers Attractive Potential in a Yield-Starved World

    In an environment of generally decent, albeit recently disappointing, growth and gently rising yields, high yield offers attractive potential in a yield-starved world.

    By Russ Koesterich, CFA
  • uploads///US High Yield Bond Fund Flows
    Company & Industry Overviews

    Inflows Return to High Yield Bond Funds in the Week to June 5

    Investor flows in high yield bond funds were in positive territory last week.

    By David Ashworth
  • uploads///US Leveraged Loan Market Volumes
    Financials

    Leveraged loan volume continues steady decline, refi cycle over?

    While yields continue pushing lower, volume is starting to slow down, which may affect the performance of leveraged loans in coming months. Weekly loan volume is a valuable gauge of the activity in the leveraged loan market. The volume represents the new supply of loans to the secondary market. The existing supply is affected by […]

    By Dale A. Norton
  • uploads///Junk Bond Yields in  and
    Company & Industry Overviews

    MDC Partners Issued the Most Junk Bonds in the Week to March 18

    MDC Partners (MDCA) offers marketing and communication network services. It issued dollar-denominated junk bonds worth $900 million on March 18.

    By Lynn Noah
  • uploads///US High Yield Bond Fund Flows
    Financials

    Must-know: High yield fund flows regaining strength, time to dip back in?

    After several weeks of record outflows, investors start regaining trust Fund flows gauge where most investors are moving their money. While following this indicator assumes momentum strategies work, in weeks of high inflows, there will be a delay between the time when funds come in and when managers can invest them in assets, so they […]

    By Dale A. Norton
  • uploads///Mega caps tend to outperform small caps when interest rates rise
    Macroeconomic Analysis

    When Do Mega Caps Outperform Small Caps?

    Mega caps outperform small caps when interest rates rise. The last two rising rates scenarios took place during the late 90s and in the mid-2000s.

    By Russ Koesterich, CFA
  • uploads///The Non Farm Payroll Figures Have Been Impressive in the Last few Months
    Macroeconomic Analysis

    The Quest for Yield: Chasing Dividend Stocks

    If you had to sum up investing in the US markets after the Great Recession in a few words, you would probably say something like “the quest for yield.”

    By Sanmit Amin
  • Financials

    Why falling junk bond yields aren’t benefiting all issuers

    Yields on high yield debt decreased by 24 basis points or 0.24% over the week ending October 24, to come in at 5.98%.

    By Phalguni Soni
  • Financials

    Weekly fund flows: High yield bonds and leverage loan ETFs

    Investor sentiments favored the U.S. equity and high yield bond market The Vanguard Total Bond Market ETF (BND) has rallied almost 1.5% since the start of the year and was down by 11 bps last week. In line with that, the Power Shares Senior Loan Portfolio (BKLN) ETF, which mainly tracks the leveraged loans, reported […]

    By Sandra Nathanson
  • Financials

    Recommendation: Keep municipal bonds in mind

    While no longer cheap per se after their extraordinary run in 2014, municipal bonds continue to look attractive versus both Treasuries and corporate bonds.

    By Russ Koesterich, CFA
  • Energy & Utilities

    Credit spreads: A fixed income investor’s must-know guide

    Credit spreads are the difference in yield between U.S. Treasuries and corporate bonds of the same maturity. Corporate bonds yield more than Treasury bonds, as they carry a risk of default.

    By Surbhi Jain
  • Financials

    Must-know: Future impacts of financial stability measures

    The Fed currently uses considerable staff resources in monitoring financial markets for risks arising from financial instability.

    By Phalguni Soni
  • Financials

    Overview: High-yield debt market borrowers set new 2014 records

    Despite a holiday-shortened week, issuance volumes for leveraged loans surged by almost 49%, week-over-week, to $21.3 billion.

    By Phalguni Soni
  • Financials

    4 ways to increase your corporate bond exposure

    Record low U.S. Treasury rates continue to push investors to find yield elsewhere, and it seems that corporations are rushing to meet the demand. Matt Tucker explains.

    By Matt Tucker, CFA
  • Financials

    Why investors piled into junk bond funds

    High market volatility usually increases risk perceptions for junk bonds (PHB). This increases spreads and yields. As a result, bond prices decrease.

    By Phalguni Soni
  • uploads///US High Yield Bond Fund Flows
    Financials

    High yield bleeding slows, but is there anything left to drain out?

    In just four weeks, the high yield bond flows amounted $9 billion in outflows. Fund flows are a good gauge of investor sentiment towards an asset class. Large outflows, such as the $900 billion one four weeks ago, should have been a good enough warning sign that something was going on, even if you were […]

    By Dale A. Norton
  • uploads///High yield bonds outperformed investment grade and Treasury bonds during the last period of rising rates
    Macroeconomic Analysis

    Why You Should Favor Credit over Duration When it Comes to Bonds

    Favor credit over duration as interest rates rise. Look for tactical opportunities within fixed income.

    By Russ Koesterich, CFA
  • Financials

    Why does the loan market see continued interest from investors?

    Last week, the leveraged loan market (BKLN) had an inflow of $411 million compared to $600 million inflows in the previous week.

    By Sandra Nathanson
  • Financials

    Must-know: Key return drivers for high-yield bond ETFs

    High-yield or junk bonds are issued by borrowers that have a lower ability to service their debt obligations. They’re rated BB+ and below—according to Standard & Poor’s credit ratings system.

    By Phalguni Soni
  • uploads///Part
    Financials

    When geopolitical risk takes precedence over interest rate risk

    The total returns on municipal debt came in at 3.32% in the first quarter of 2014, as measured by the Barclays Municipal Bond Index.

    By Phalguni Soni
  • Financials

    Why Kocherlakota says price targeting beats inflation targeting

    Along with the two suggestions mentioned in Part 6 of this series, Narayana Kocherlakota also dropped in two additional suggestions for improving the FOMC framework statement.

    By Surbhi Jain
  • uploads///US Leveraged Loan Market Volumes
    Financials

    Why are high yield volumes strong despite fund outflows? (Part 4)

    Continued from Part 3 Leveraged loans remain resilient On leveraged loan land (BKLN), the high volatility of the bond markets (BND) doesn’t seem to exist. While high yield bond issuance (JNK) has been up and down depending on the weather, leveraged loans have remained relatively resilient over the past month. Steady volumes, aggressive issuance Volumes last […]

    By Emerging Markets Analyst
  • uploads///Leverage Loan Issuance
    Financials

    Why the decline in Treasury rates helped the leveraged loan market

    Contrary to high yield bonds (HYG), leveraged loans posted a better-than-expected week.

    By Sandra Nathanson
  • uploads///Bond ETFs Have Had a Tough Time in
    Macroeconomic Analysis

    Where Can You Find Relative Value within Fixed Income?

    Where’s the relative value within fixed income? High yield bonds appear relatively attractive.

    By Jeffrey Rosenberg
  • uploads///Junk Bond Yields in  and
    Company & Industry Overviews

    TerraForm Global Was the Highest Junk Bond Issuer Last Week

    Junk bond issuance activity was subdued in the week ended July 31 as issuers remained wary of the volatility in the commodities markets and the fall in Chinese equities.

    By David Ashworth
  • uploads///US High Yield Bond Fund Flows
    Financials

    Pack your bags, the high yield party is over!

    The high yield market had its largest ever weekly outflow Fund flows are strong indicators of investor confidence and offer insight into changing views within the investor community. Whether it is sharp reversals or steady flows, the weekly flows are important to understand the weight investors assign to different market events and changing conditions. Last […]

    By Dale A. Norton
  • uploads///HYG and JNK
    Financials

    Why are high yield volumes strong despite fund outflows? (Part 6)

    Continued from Part 5 Cause for concern? With the issuance volumes across the high yield bond market and the leveraged loan market, the market seems like it should be back on a healthy note. On the other hand, the strong outflows in the high yield market the previous week are a reason for concern. August […]

    By Dale A. Norton
  • Financials

    Why the bull run in stocks affected high-yield bond markets

    When the economy is expanding, corporate revenues and profits increase. Corporate delinquencies usually fall and the high-yield debt issuers’ debt-coverage ratios improve.

    By Phalguni Soni
  • Financials

    Comparing leveraged loans and high yield bonds: Investor base

    Both leveraged loans (BKLN) and high yield bonds (HYG) have a similar investor base, with the exception of banks in leveraged loans.

    By Sandra Nathanson
  • Financials

    Why the FOMC believes that credit conditions are still strong

    Easier borrowing conditions stimulate business investment among firms. Higher investment would generate employment and benefit firms’ revenues and profits.

    By Phalguni Soni
  • Financials

    Why last week’s sharp dip in yields came as a surprise

    And though the 10-year yield recovered somewhat Thursday as Treasury prices dropped, Wednesday’s dip below 2% came as a surprise.

    By Rick Rieder
  • uploads///US High Yield Bond Fund Flows
    Financials

    What goes up comes crashing down: Bonds in the doghouse (Part 2)

    High yield bonds (JNK) are also in the doghouse High yield fund flows reversed significantly last week after two strong weeks leading up to the FOMC (Federal Open Market Committee) meeting. The question now is whether these outflows were temporary caution prior to the meeting, or if investors have packed up and left for sure. High yield (HYG) fund […]

    By Dale A. Norton
  • Financials

    Overview: High-yield bond markets since the Great Recession

    High-yield, or junk-rated, bonds have higher yields than investment-grade bonds—like U.S. Treasuries and high-quality corporate debt. They’re issued by borrowers with higher credit risk—for example, with a lower ability to service the debt issued. Investors need a higher return to compensate for the higher risks involved.

    By Phalguni Soni
  • Healthcare

    The FOMC adopts new forward guidance that affects stocks and ETFs

    The policy statement following the recent Federal Open Market Committee (or FOMC) meeting held on March 18–19 received diverse reactions from policy makers and the investment community.

    By Surbhi Jain
  • Financials

    Must-know: The success of the Fed’s taper on bond yields

    At the September meeting, the Fed announced that it would taper monthly bond purchases by another $10 billion. The monthly bond purchases would be $15 billion per month starting in October. Monthly bond purchases would now consist of $10 billion in longer-term Treasuries (BND) and $5 billion in agency mortgage-backed securities.

    By Phalguni Soni
  • Financials

    Unemployment and discouraged workers: The improvement continues

    This article considers the halfway mark improvement in the U-4 labor data and the implication for fixed income investors.

    By Marc Wiersum, MBA
  • Financials

    Why leveraged buyout debt deals mark record first half in 2014

    Leveraged loan (BKLN) mutual funds continued to see investors exit for the eighth consecutive week, with net outflows of $457 million last week.

    By Phalguni Soni
  • Financials

    Why high yield weekly issuance continues to favor suppliers

    Last week ended on a similar mood as the previous week. Issuers continued to supply bonds to the hungry market. High yield issuance ended the week 26% higher than the previous week.

    By Sandra Nathanson
  • Financials

    Why Fisher and Plosser disagreed with the FOMC policy motion

    Richard Fisher believes that the Fed needs to tighten policy. This is based on the improved labor market and inflation outlook. He also believes that continued monetary accommodation is causing signs of “financial excess” in certain asset classes. He spoke earlier about signs of froth in high-yield bond (JNK) (HYG) markets.

    By Phalguni Soni
  • Financials

    Why are junk bond yields the lowest ever on record?

    The BofA Merrill Lynch U.S. High Yield Master II Index increased by 0.34% over the week ending June 20, and is up by 5.64% so far this year (up to June 20).

    By Phalguni Soni
  • uploads///High Yield Bond Break Prices
    Financials

    Break prices confirming weakness in the bond high yield market

    The price at which bonds are breaking for trading in the secondary market shows a clear downtrend year to date. The price at which bonds are placed with initial investors is given by the original issue discount (OID) and sets the bond’s yield to maturity. The break price, on the other hand, refers to the […]

    By Dale A. Norton
  • uploads///WTI crude
    Fund Managers

    Jeffrey Gundlach: The Junk Bond Market Needs Higher Oil Prices

    Jeffrey Gundlach also warned about the high-yield market (HYG) (JNK). He said the “clock is running out” for energy companies (IEZ) due to low oil (USO) prices.

    By Surbhi Jain
  • Financials

    Must-know: Working the municipal bond portfolio

    Flex more muni muscle with a flexible municipal fund. “Unconstrained” investing has gotten quite a bit of press this year.

    By Peter Hayes
  • Financials

    Analyzing secondary market trends in leveraged loans

    Collateralized Loan Obligation (or CLO) deals continued to thrive. Four CLO deals totaling $2 billion came through in the week ending November 7.

    By Phalguni Soni
  • uploads///Price Movement in the VFINX and the SPY
    Company & Industry Overviews

    Why Did US Stock Indices Rise?

    Treasury yields fell across the yield curve last week after the US Department of Labor reported that the economy added fewer jobs in April.

    By Lynn Noah
  • Financials

    Why investors are turning to corporate bond ETFs

    Investors seeking exposure to investment grade or high yield corporate debt have increasingly been using fixed income ETFs.

    By Matt Tucker, CFA
  • uploads///Crude Oil Production in the US Has Increased
    Macroeconomic Analysis

    Where Are Oil Prices Heading?

    Oil prices are expected to be lower for longer. This is bad news for high yield bond funds (HYG) (JNK) in the United States.

    By Russ Koesterich, CFA
  • uploads///US High Yield Bond Market Issuance
    Financials

    High yield issuance continues to increase, spike likely unsustainable

    The large high yield bond issuance was the second largest over the past two months and the highest in number of issuances  Weekly issuance can help gauge both the demand and supply of the high yield bond market. New bonds increase the supply available to investors in the secondary market and the demand given indicates […]

    By Dale A. Norton
  • uploads///amount of cash held tech companies
    Macroeconomic Analysis

    Investor Outlook: Focus on Dividend Growth

    Investors should focus on dividend growth equities (IYLD) for alternative sources of income. Dividend-paying stocks can act as a cushion in this low-yield world.

    By Russ Koesterich, CFA
  • uploads///Price Movement in the VFINX and the JNK
    Company & Industry Overviews

    How Did Junk Bond Yields Fare ahead of the FOMC Meeting?

    Junk bond yields fell 18 basis points week-over-week and ended at 8.38% on March 11, 2016.

    By Lynn Noah
  • uploads///US Leveraged Loan Market Volumes
    Financials

    Why leveraged loan volume is losing steam: Can prices hold?

    Last week was dismal in terms of volume for both bonds and loans given the short week and anticipation of a Fed minutes release Weekly volumes are good indicators of market strength. The high yield bond market volumes have fallen significantly since May due to the speculation of the earlier-than-expected tapering of quantitative easing. Fed […]

    By Dale A. Norton
  • Financials

    Bear strategy: Profit from rising rates with fixed income ETFs

    Investors could consider hedging their short-term duration risk (HYG: 3.98 years, JNK: 4.20 years) with a short position in longer-dated bonds.

    By Marc Wiersum, MBA
  • uploads///Federal funds rate has remained low
    Macroeconomic Analysis

    Why Excessively Low Rates Could Be Harmful

    Excessively low rates have side effects. Treasury yields have been beaten down due to the Fed’s excessive buying. Currently, the ten-year Treasury (IEF) yields are 2.1%.

    By Russ Koesterich, CFA
  • Financials

    Assessing high yield bonds as part of your fixed income portfolio

    The decadent offering of barbecued ribs at a weekend party is similar to that of high yield fixed income investments. By taking on greater risk of spilling sauce on your shirt you have the experience of a true summertime staple…

    By Matt Tucker, CFA
  • Tech & Comm Services

    Hedging: You can profit from rising rates with fixed income ETFs

    Should interest rates rise equally in the five-year part of the yield curve as the 20-year part of the yield curve, HYG and JNK would likely decline roughly 3.98% and 4.20% in value.

    By Marc Wiersum, MBA
  • Financials

    Why did investors give US debt markets the thumbs down?

    Volatility, or the index commonly known as the “fear factor,” surged over 34% to 17.03 in the week ending August 1—this was the highest level in almost four months.

    By Phalguni Soni
  • Financials

    Must-read: Use emerging market bonds for higher yield potential

    For those who want a little more adventure on their menu, there’s always the option of adding some unique flavors like spicy kebabs. This is the equivalent of adding some emerging markets fixed income to your bond portfolio.

    By Matt Tucker, CFA
  • Healthcare

    Why dividend recapitalization is the sweet spot for leveraged loans

    While M&A activity was still below market prospects, demand for dividend recapitalization deals was mostly strong last week.

    By Sandra Nathanson
  • uploads///High Yield Bonds vs Leveraged Loans Percentage
    Financials

    Why leveraged loans have followed high yield bonds (Part 1)

    If high duration drove the bond sell-off, why did loans follow suit? High yield bonds and leveraged loans are the two main asset classes composing the sub-investment grade called “fixed-income debt capital markets.” High yield bonds are defined as bonds rated below BBB-, and leveraged loans are those paying over L+125 basis points or rated […]

    By Dale A. Norton
  • uploads///US High Yield Bond Fund Flows
    Company & Industry Overviews

    High-Yield Bond Funds Witnessed Large Outflows

    Investor flows into high-yield bond funds were negative last week. According to Lipper, net outflows from high-yield bond funds totaled $1.8 billion.

    By Lynn Noah
  • uploads///SHY price vs NAV
    Macroeconomic Analysis

    When The Net Asset Value Of A Bond ETF Differs From Market Price

    The Intraday Indicative Value gives us a more real-time value than the bond ETF’s NAV. It’s considered an implied value of an ETF.

    By Matt Tucker, CFA
  • Financials

    Cyclical and structural unemployment in a recovering economy

    A major disagreement among Fed economists is how to classify unemployment in the economy. Unemployment can be caused by cyclical or structural factors. A number of Fed officials, including Janet Yellen, believe that there’s evidence of significant “labor market slack.” This is caused by cyclical factors.

    By Phalguni Soni
  • uploads///The federal funds rate has remained low
    Macroeconomic Analysis

    The Interest Rate Timeline Has Shifted

    The graph above shows the history of the federal funds rate. The federal funds rate is a tool that the Fed uses to control the interest rate.

    By Matt Tucker, CFA
  • uploads///Preferred Stocks Have Low Correlations with Common Stocks and Bonds
    Macroeconomic Analysis

    Where You Can Find Yield Today

    Preferred stocks have typically seen the highest yields in the investment-grade universe, which makes them an attractive alternative to other high yielding securities.

    By Russ Koesterich, CFA
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    Energy & Utilities

    Why money-hungry energy companies are worse off now

    Rates on high yield bonds continued to back up last week, and the yield on the BofAML HY Bond Index is now at its highest point in 2013. This is a negative catalyst for non-investment grade companies with debt funding needs.

    By Ingrid Pan
  • Financials

    Asset classes react differently to credit and geopolitical crises

    The S&P 500 Index (SPY) was positively affected towards the end of the week due to market perceptions that the crisis in Ukraine may be easing as Russia called off military exercises near Ukraine. The Index had been down lately due to geopolitical fears in the Middle East and Russia.

    By Phalguni Soni
  • Consumer

    AAA and AA credit versus the below-investment-grade Sprint

    This article considers the trade-offs between high-quality, low-yielding fixed income opportunities and lower-quality higher yields in the current improving economic environment.

    By Marc Wiersum, MBA
  • uploads///US Leveraged Loans Flows
    Company & Industry Overviews

    Must-Know Secondary Market Trends in Leveraged Loans

    Returns on leveraged loans trended down in the week ended March 13. The S&P/LSTA U.S. Leveraged Loan 100 Index fell by 0.2% over the week ended March 13.

    By David Ashworth
  • uploads///High Yield Bond Yields Have a High Negative Correlation With Oil Prices
    Macroeconomic Analysis

    How Can You Add Carry to Your Portfolio?

    Adding carry to your portfolio in a low-return scenario could cushion your portfolio.

    By Russ Koesterich, CFA
  • Tech & Comm Services

    Labor conditions: AAA credit versus the sub-investment-grade Sprint

    This article takes a closer look at the changes in the discouraged worker data and considers the implications for fixed income investors.

    By Marc Wiersum, MBA
  • Financials

    Must know: Why junk bond funds are in vogue again

    Secondary market activity in high yield debt mutual funds High yield debt (HYG) mutual funds recorded their second consecutive weekly inflow. Net flows into junk bond (JNK) funds came in at ~$1.6 billion in the week ending October 31. Net flows into high yield bond (PHB) mutual funds are down by ~$2.3 billion so far […]

    By Phalguni Soni
  • uploads///HY Fund Flows_Feb
    Financials

    Demand shocks: Why high yield bond funds flows moved up

    Know why the high yield bond market rebounded after two weeks of consecutive outflows.

    By Sandra Nathanson
  • Healthcare

    Why is leverage a double-edged sword for companies like Apple?

    Corporate bond issuance in the U.S. reached $1.4 trillion in 2013, according to the Securities Industry and Financial Markets Association (SIFMA), a new record.

    By Phalguni Soni
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    Financials

    Why high yield bonds offer an investment opportunity

    High yield bonds have come under pressure lately, and as a result, are now looking relatively attractive. Spreads recently widened out to the highest level in a year.

    By Russ Koesterich, CFA
  • Consumer

    Why did new high yield bond issuance spike last week?

    High yield issuance last week rebounded sharply from the past two weeks’ lows. Issuers took advantage of strong market conditions for debt offered at relatively low borrowing costs.

    By Sandra Nathanson
  • Financials

    Why the Fed’s Dudley and Evans advise patience in lifting rates

    After the 2008 financial crisis and Great Recession, U.S. monetary policy has been designed to boost economic growth and create jobs. The Fed has kept the federal funds rate at near-zero levels since December 2008.

    By Phalguni Soni
  • uploads///High Yield Bonds Appear Relatively Attractive
    Macroeconomic Analysis

    Areas of Relative Value within Fixed Income

    For investors, the implications are not to load up on bonds, but to tactically look for areas of relative value within fixed income.

    By Russ Koesterich, CFA
  • uploads///inflation expectations
    Macroeconomic Analysis

    Current High Volatility Regime Will Likely Persist

    The high volatility regime will likely be the norm in the future. State Street observed that the US market has already clocked 42 highly volatile days in 2015.

    By Russ Koesterich, CFA
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