High-yield bonds, otherwise known as junk bonds, have traveled an arduous path over the last twelve months. These decidedly sensitive credit securities fell out of favor in the fourth quarter of 2014 as fears over wavering stock gains spilled over into riskier fixed-income assets.
Nevertheless, junk bond ETFs have defied expectations by pressing higher over the last four months and recently broke out to new 52-week highs.
High-Yield Bond ETF Barometer
The iShares iBoxx $ High Yid Corp Bond (ETF) (NYSE: HYG) is the largest barometer of high-yield credit in this space, with over $17.6 billion in total assets. HYG invests in over 1,000 individual securities of below-investment grade companies such as T-Mobile US Inc (NYSE: TMUS) and Ally Financial Inc (NYSE: ALLY).
/www.benzinga.com/etfs/sector-etfs/15/04/5411180/high-yield-bond-etfs-grapple-higher alt=High-Yield Bond ETFs Grapple Higher>Full story available on Benzinga.com
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