From ETF Channel: In trading on Thursday, shares of the SPDR Bloomberg Barclays High Yield Bond ETF (Symbol: JNK) entered into oversold territory, changing hands as low as $34.59 per share.
From Zacks: Junk bond ETFs have had a muted run lately with popular funds like the SPDR Barclays High Yield Bond ETF (JNK) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG) shedding about $1.28 billion and $1.27 billion in assets since the start of October (as of Oct 16, 2018).
Technical analyst Chris Kimble examines the year-long divergence of junk bonds to stocks and wonders if it’s a signal of a major equities pullback looming.
From Franklin Templeton Investments: In 2018, rising inflation, higher US interest rates and escalating trade tensions have led to concerns about global economic growth and bouts of equity-market volatility.
From Tyler Durden: It has been a tough year for junk bond funds, if not for junk bond spreads, which as we noted recently have shown impressive resilience and have solidly outperformed IG since the start of the year (largely thank to a scarcity in HY supply, and a deluge of IG bond issuance to fund a new […]
From Invesco: US interest rates have defied market expectations in recent years, staying historically low despite solid economic growth.
From Invesco: Interest rates continue their upward trend. In March, the US Federal Reserve (Fed) hiked the federal funds rate by 25 basis points to a target range of 1.5% to 1.75%, citing strength in the US labor market, a low unemployment rate and moderate economic growth.1
From WisdomTree: Has the fixed income arena entered a new phase? While the lion’s share of attention has been given to interest rate developments for quite some time now, another topic for discussion has been where we are in terms of the U.S. credit cycle.
From Invesco: The Federal Reserve (Fed) raised interest rates by a quarter of a percentage point as expected on Wednesday and signaled two more rate hikes for 2018. It also released its Summary of Economic Projections (SEP) for the next few years, which suggests that the Fed is optimistic regarding the future performance of the […]
From Contrarian Outlook: If you’re worried inflation will sideswipe your portfolio, well, you have good reason to be.
From Chris Kimble: Some times Junk bonds can give quality hints to the next short & long-term move in stocks. Junk bonds look to be sending both of those signals again. The next two charts share long and short-term perspectives and opportunities in the junk space.
From John Rubino: Towards the end of financial bubbles, people who previously paid little attention to things like “quality” start trying to figure out what they actually own. The result is either funny or terrifying, depending on the point of view.
From Chris Kimble: Stock bulls historically like to see Junk Bonds moving higher and get concerned when they are weak. Some view Junk bonds as a leading indicator to where stocks are headed.
From Tyler Durden: According to Morgan Stanley Wealth Management, it is too late to buy junk bonds in this market cycle, which is why one of the otherwise most bullish banks is cutting its high-yield bond holdings to zero, Mike Wilson, the CIO of Morgan Stanley Wealth writes in his 2018 outlook.
From Mike Burnick: Stocks have been defying gravity recently. They were moving relentlessly higher. But then last week, they hit a tax-reform speed bump.