Junk Bonds: Risk Appetite Bounces on Support!Junk Bonds: Risk Appetite on Support!
Credit markets have been buzzing — headlines warn of record outflows and panic rotation. But AMEX:HYG , the high-yield bond ETF, just told a different story.
What is AMEX:HYG ?
It tracks “junk bonds” — loans to companies with weaker credit. They offer h
Key stats
About iShares iBoxx $ High Yield Corporate Bond ETF
Home page
Inception date
Apr 4, 2007
Structure
Open-Ended Fund
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Primary advisor
BlackRock Fund Advisors
Distributor
BlackRock Investments LLC
HYG was the first mover in the high-yield corporate bond market. For many years its been one of the largest and most liquid junk bond ETFs, along with archrival JNK. Its core exposure through the iBoxx index it tracks is solid, covering the most liquid corner of the junk bond market. HYG replicates much of the overall junk bond market, but often with shorter maturity, less interest-rate sensitivity, and also less yield. HYG tends to tracking its index more closely than most. However, direct comparisons are difficult, as HYGs underlying index factors in transaction costs, while others, following industry convention, do not. In sum, HYG is an anchor tenant in the ETF bond market.
Classification
What's in the fund
Exposure type
Corporate
Stock breakdown by region
IF you are Bearish SP 500 Your EARLY The chart posted is That of High yield Market ETF HYG we have just finished of the correct in this sector and should see Liquidity coming back into assets One Last Gasp This should raise mags qqq and spy toa new record high as most other indexes struggle to rally back to .618 best of trades W
$HYG will get a boost this summer when rates are cut due to BOJI see the BOJ dumping treasuries this summer, which'll force down the USDJPY pair, and increase inflation here at home. When rates go down, borrowing money is easier, especially for junk corporations avoiding default due to decades high interest rates.
Could AMEX:HYG fall back into the box one la
I trade options and this is by far the best place to be for 2024I trade options so I look for the cheapest way to make the most amount of money. The most Delta for the least Theta. Last year it was MSTR, this year it is HYG and JNK. Record short positions on HYG started in March 2023 and it still continues today.... for example there are 20,000 puts on HYG expir
HYG and why it matters
High yield corporate bonds show a significant correlation with the risk-on/risk-off sentiment for the S&P 500 (SPX). As we can observe, the current market structure resembles a wedge, which can technically serve as both support and resistance.
To add complexity, we're currently at a channel resist
See all ideas
Summarizing what the indicators are suggesting.
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Neutral
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Moving Averages
Neutral
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Moving Averages
Neutral
SellBuy
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Displays a symbol's price movements over previous years to identify recurring trends.