Investors shun high-yield debt ETFs despite gains as broader bond market stumbles

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 97%

Россия Новости Новости

Россия Последние новости,Россия Последние новости

Junk bond ETFs fell Thursday after the latest inflation report, but have gains this year on a total return basis

Please send feedback and tips to christine.idzelis@marketwatch.com or isabel.wang@marketwatch.com. You can also follow me on X at @cidzelis and find me on LinkedIn. Isabel Wang is at @Isabelxwang.Investors have been fleeing exchange-traded funds that buy corporate junk debt, a risky pocket of fixed income that has been outperforming the total U.S. investment-grade bond market as yields surge.

“You’re getting a lot more carry,” said Steve Laipply, global co-head of bond ETFs at BlackRock, by phone. “That helps cushion price declines.” High-yield, or junk, bond ETFs were falling Thursday as Treasury yields rose, after a report on inflation showed that headline consumer prices rose slightly more than Wall Street expectations for September.

Earlier this month, the iShares iBoxx $ High Yield Corporate Bond ETF traded more than $10 billion on Oct. 4 to mark its highest daily trading volume since its inception in 2007, a spokesperson for BlackRock said in an email that same week. The smaller iShares iBoxx $ High Yield Corporate Bond ETF is the largest exchange-traded fund targeting corporate junk bonds, according to Aniket Ullal, head of ETF data and analytics at CFRA Research. The fund has around $13 billion of assets under management, FactSet data show.

The yield on the 10-year Treasury note BX:TMUBMUSD10Y climbed 11.5 basis points on Thursday to 4.710%, while 2-year Treasury rates BX:TMUBMUSD02Y rose 6.6 basis points to 5.069%, according to Dow Jones Market Data. Yields on six-month T-bills BX:TMUBMUSD06M were even higher, at around 5.56% on Thursday afternoon, according to FactSet data.

 

Спасибо за ваш комментарий. Ваш комментарий будет опубликован после проверки
Мы обобщили эту новость, чтобы вы могли ее быстро прочитать.Если новость вам интересна, вы можете прочитать полный текст здесь Прочитайте больше:

 /  🏆 3. in RU

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

European stocks open higher as positive momentum continues; UK GDP meets expectationsEuropean stock markets opened higher Thursday as investors assess U.S. inflation and dovish Fed comments.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »

European stocks higher as positive momentum continues; UK GDP grows slightlyEuropean stock markets were higher Thursday as investors assess U.S. inflation and dovish Fed comments.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »