high yield bonds

A prolonged period of unusually low junk bond spreads could be setting the stage for a dramatic market reversal, according to this economist, who sees eerie similarities to the pre-crisis conditions of May 2007. What Happened: The credit spreads of high-yield or junk corporate bonds have remained...

With escalating interest rates and inflationary pressures, the resiliency of bond investments is being put to the test. Investors find themselves watching helplessly as bond prices undergoe a relentless downward spiral, battered by the unrelenting blows of surging borrowing costs. The tumultuous...

Friday's trading session saw a large spike in high-yield ETF volumes, resulting in single-day record volume. Tim Anderson of TJM Investments said Friday's trading activity was also an exercise in "sell what you can, if not what you want to." Lotfi Karoui of Goldman Sachs noted that 2015 could be...

After five years of near-zero interest rate policy and several rounds of quantitative easing (QE), a sell-off in junk bonds is gaining momentum. Capital inflows into junk bond portfolios and high-yield ETFs were very robust until the Federal Reserve began its QE tapering program. With QE3...

The high yield bond market has continued to reap the benefits of low interest rates and a hunger for yield that has fixed-income investors climbing down the credit ladder. This healthy demand has helped push prices in many junk bond ETFs to all-time highs, which in turn has pressed yields near...