Logo - Rain Barrels and Rain Harvesting Products by WeckTech

Your online source for rain barrels by Desert Plastics and rain harvesting products

Home

Rain Harvesting

Rain Barrel Information

Catalog

WeckTech Corporate Site

New Balance Ladies Running Shoes

´╗┐High Yield Living Up To Its Name

Yields on High Yield corporate bonds (corporate bonds below BBB) are surging. Part New Balance Old

New Balance Ladies Running Shoes

New Balance Ladies Running Shoes

New Balance Ladies Running Shoes

We don't see this move higher in junk bond spreads as a horrible sign for the economy, necessarily. Spreads are near their all time lows and would have to run much, much higher to be indicative of a jump in economy wide default risk that comes with slowing corporate revenues in a recession. Rather we see it as a healthy risk re pricing off of all time lows in premiums demanded for some relatively speculative investments. The high yield move is a negative for equities, though, as generally speaking high yield spreads and the S 500 are very negatively correlated.

That 3.14% decline is equivalent to more than two thirds of the 30 day yield on the ETF (4.52%). There have also been massive redemptions of high yield bond ETFs with HYG suffering $361mm (or 3% of assets) in net outflows yesterday (the second most of any ETF) and its competitor JNK seeing New Balance Men Running Shoes

New Balance Ladies Running Shoes

New Balance Ladies Running Shoes

high yield bonds generally track equities closer than investment grade bonds do because of their risk profile, which is much more similar to equities than a highly rated corporate. The chart below shows the pain as measured by the spread between Treasuries and the bonds in the Bank of America Merrill Lynch High Yield Master New Balance Ladies Running Shoes II Index, a widely followed benchmark.

New Balance Ladies Running Shoes

While high yield spreads have spiked, the spreads on corporate bonds have steadily trended sideways, and while they may be headed slightly higher, we aren't seeing anything close to the explosion in spreads the junk bond market is showing.

of it has to do with higher equity volatility; New Balance White Football Boots

New Balance Ladies Running Shoes

$122mm or 1.34% of its assets leave the building via redemptions.

Interestingly, though, the chart of LQD, which invests only in investment grade bonds, doesn't look anywhere near as bad:

New Balance Ladies Running Shoes

And all you have to do to understand why is look at the yield spread on investment grade debt. The below chart shows the same spread as we illustrated above for high yield, but this time uses the Bank of America Merrill Lynch Corporate Bond Master II index, which doesn't include riskier high yield bonds.

As a result, high yield bond focused investments have been getting crushed. Here's a chart of the HYG ETF, which invests exclusively in high yield bonds:

After matching performance for a long time, high yield is starting to give up returns to investment grade. The below chart traces the ratio of HYG to LQD over the past year, and the underperformance of HYG is really starting to accelerate here.

New Balance Ladies Running Shoes

New Balance Ladies Running Shoes

New Balance Ladies Running Shoes

New Balance Vazee Rush Slip On

New Balance White People

Fred Perry Donkey Jacket
New Balance Black And Pink

New Balance Lightweight Shoes

New Balance 710 Outdoor Suede

New Balance Disney Shoes

Fred Perry White Jacket
Polo Shirts Custom Uk
Us Polo T Shirts Online Discount
New Balance Numeric Pro Court

Fred Perry Black Polo Dress
New Balance Tennis

New Balance Hypebeast

New Balance X Jcrew

Home / New Balance Ladies Running Shoes