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High-yield selloff continues

Published 11/15/2017, 08:07 AM
Updated 11/15/2017, 08:07 AM
© Reuters.  High-yield selloff continues
  • We're only halfway through November, but junk-rated debt is down 1.1% - on pace for its worst month since oil prices were crashing in January 2016. High-yield investors aren't used to this - there have only been three down months in the last 20, with losses each time less than 0.4%.
  • Spreads are on the rise. Since hitting a low of 338 basis points in late October, they've climbed 46 basis points.
  • While some fear contagion, Marty Fridson says prices are likely just correcting from perky levels. “The bears had been gunning for this ... High yield has been very expensive. A release valve is a good way to describe it, to let some air out of the balloon.”
  • Source: Eric Platt at the FT
  • ETFs: HYG, JNK, DHY, HIX, PHT, HYLD, EAD, HYT, JQC, CIK, DSU, ACP, SJB, ANGL, NHS, MCI, KIO, ARDC, AIF, CIF, PHF, IVH, FHY, GGM, MPV, JSD
  • Now read: JQC - Good Fund, Great Discount, Some Concerns


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