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Investors can't get enough high-yield, with yields moving to 3-year low

Published 10/23/2017, 10:33 AM
Investors can't get enough high-yield, with yields moving to 3-year low
BARC
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CIK
-
DHY
-
EAD
-
NHS
-
HYLD
-
HYG
-
JNK
-
ANGL
-
SJB
-
ACP
-
DSU
-
HIX
-
HYT
-
JQC
-
KIO
-
MCI
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PHT
-
  • The Bloomberg Barclays (LON:BARC) High Yield Index closed last week at just a 330 basis point spread to Treasurys, with a yield-to-worst of 5.34%.
  • Probing further, BB credit spreads moved to a 10-year low, with yields at a four-year low. CCC spreads fell to three-year lows.
  • While there were $450M of cash outflows from retail funds, real money appetite for paper - the junkier the better - showed no signs of fading.
  • Energy, of course, makes for a nice chunk of high yield, and sentiment there is fairly strong as oil prices threaten to rise to the mid-$50s.
  • Source: Bloomberg's Gowri Gurumurthy
  • ETFs: HYG, JNK, DHY, HIX, PHT, HYLD, EAD, HYT, JQC, CIK, DSU, ACP, SJB, ANGL, NHS, MCI, KIO
  • Now read: JQC: It Missed The Memo?

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