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).
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.
Fixed income ETFs: Key differences in duration and quality
This article considers the trade-offs between high-credit-quality and lower-credit-quality, as well as shorter-duration and longer-duration, fixed income ETFs.
Will investors prefer investment grade over high yield in 2014?
On February 28, 2014, the short interest on high-yield bond ETFs HYG and JNK had increased to ~21% and 10%, respectively, of the total shares outstanding.