High-yield corporate bond exchange traded funds have recently endured ample criticism.
Carl Icahn even went so far as to call BlackRock, Inc. (NYSE: BLK), the world's largest asset manager and issuer of the iShares iBoxx $ High Yid Corp Bond (ETF) (NYSE: HYG), dangerous due to its high-yield bond exposure.
An oft-cited critique of junk bond ETFs is that these funds would be vulnerable to a so-called liquidity event where panic selling would jam the exits because there, in theory, would be a dearth of buyers to absorb excess ETF supply.
“As we have mentioned countless times in the past, average daily trading volume in terms of ETFs does not necessarily accurately reflect the true underlying liquidity of that given ETF, however in this category, because the underlying portfolios are made up of ...
/www.benzinga.com/trading-ideas/long-ideas/15/08/5743694/an-alternative-for-sticking-with-junk-bond-etfs alt=An Alternative For Sticking With Junk Bond ETFs>Full story available on Benzinga.com
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