iShares iBoxx $ High Yield Corporate Bond ETF (ARCA: HYG)

에 대한 최신 뉴스 iShares iBoxx $ High Yield Corporate Bond ETF (ARCA:HYG)

iShares iBoxx $ High Yield Corporate Bond ETF

The Fund seeks to track the investment results of the Markit iBoxx USD Liquid High Yield Index (the Underlying Index), which is a rules-based index consisting of U.S. dollar-denominated, high yield (as determined by Markit Indices Limited (the Index Provider or Markit)) corporate bonds for sale in the U.S. The Underlying Index is designed to provide a broad representation of the U.S. dollar-denominated liquid high yield corporate bond market. The Underlying Index is a modified market-value weighted index with a cap on each issuer of 3 percent. There is no limit to the number of issues in the Underlying Index. As of February 29, 2024, the Underlying Index included approximately 1,187 constituents. As of February 29, 2024, a significant portion of the Underlying Index is represented by securities of companies in the consumer services and industrials industries or sectors. The components of the Underlying Index are likely to change over time.

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아크 인베스트의 캐시 우드에 따르면 미국 국채 금리가 급등한 후 오버나이트 자금 조달 금리(SOFR) 스왑 스프레드가 확대되어 &#34;심각한 유동성&#34; 문제를 예고하고 있다. 전문가들은 정부와 연방준비제도의 개입만이 이 위기를 막을 수 있을 것으로 보고 있다.

캐시 우드, 오버나이트 차입 금리 스프레드 확대 &#34;심각한 유동성 문제&#34; 경고

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미국의 금리가 20년 넘게 유지되는 동안 투자자들은 이익을 창출하고 주식과 부동산을 다양화 하는 고수익 기업채의 영역으로 눈을 돌리고 있습니다. 



투자자들은 이익을 창출하고 있으며, 지난 2023년 10월에 관찰된 최저치에서 10% 증가한 금액으로 급등하고 있습니다. 



채권에 대한 관점에서 살펴보면, 이자율과 가격은 반대 방향으로 움직이며, 이는 이자율이 상승함에 따라 가격이

2024년 4월, 수익률 20% 이상인 미국 고수익 회사채 상위 10개

iShares Interest Rate Hedged High Yield Bond ETF

iShares U.S. ETF Trust iShares Inflation Hedged High Yield Bond ETF

HYDROGENETICS INC by Hydrogenetics Inc.

FlexShares High Yield Value-Scored Bond Index Fund

iShares Trust iShares High Yield Corporate Bond BuyWrite Strategy ETF

Days after warning of a potential &#8220;market dysfunction&#8221; in the U.S. Treasury market, economist Craig Shapiro has signaled a significant shift, suggesting the &#8220;Fed put&#8221; might be nearing activation.
What Happened: In a recent X post, Shapiro pointed to the rapid escalation of conditions he previously outlined, stating, &#8220;Less than 3 days later, we are here: UST market dysfunction.&#8221;
Shapiro, the macro strategist at 3-Circle Investments by the Bear Traps Report, said in his <a href="https://www.benzinga.com/25/04/44661029/trump-and-fed-stand-firm-lack-of-a-put-could-drive-the-market-lower-very-quickly-warns-expert">analysis earlier this week</a> that the Federal Reserve would only intervene when financial stability becomes a risk, specifically triggered by a malfunctioning Treasury market.
According to him, factors like forced deleveraging, basis trade unwinds, or foreign repatriation could initiate such a scenario. These conditions could now be materializing after the U.S. imposed 104% tariffs on China, which has shot the 10-year and 30-year Treasury yields up, amid a market correction.
While investors move toward reliable fixed income instruments during market turmoil, which should lower the bond yields, the contrary rise in yields suggests multiple possibilities.
Moody&#8217;s Analytics Chief Economist Mark Zandi suggested to <a href="https://www.resiclubanalytics.com/p/housing-market-homeowner-equity-buffer-according-to-batchservice">ResiClub</a> that the <a href="https://www.benzinga.com/news/global/25/04/44705797/high-stakes-high-yields-investors-puzzled-with-us-treasuries-defiant-run-amid-market-turmoil">sharp yield increase</a> is likely caused by hedge funds selling Treasuries to cover margin calls on their stock positions. On the other hand, some experts have pointed out that China could be selling U.S. Treasuries in response to heavy tariffs.
&#8220;Buying more gold which will anticipate the Fed&#8217;s reaction,&#8221; said Shapiro, revealing his investment strategy based on the expectation of central bank intervention.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Well, that escalated quickly. &quot;Fed Chair Powell is only going to flinch when financial stability becomes a risk which happens when the UST market begins to dysfunction&#8230;Now if the UST market starts to sell off because of forced deleveraging, basis trade unwinds or foreign… <a href="https://t.co/MtFaQG3oOx">https://t.co/MtFaQG3oOx</a>
&mdash; Craig Shapiro (@ces921) <a href="https://twitter.com/ces921/status/1909853436037767363?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote>
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See Also: <a href="https://www.benzinga.com/government/regulations/25/04/44705659/cathie-wood-points-to-serious-liquidity-issues-as-overnight-borrowing-rate-spreads-widen-on-spiking-treasury-yields-this-crisis-is-calling-out-for-some-kind-of-mar-a-lago-accord">Cathie Wood Points To &#8216;Serious Liquidity Issues&#8217; As Overnight Borrowing Rate Spreads Widen On Spiking Treasury Yields: &#8216;This Crisis Is Calling Out For Some Kind Of Mar-a-Lago Accord&#8217;</a>
Why It Matters: Ed Yardeni of Yardeni Research suggests that "Fixed-income investors may be starting to worry that the Chinese and other foreigners might start selling their U.S. Treasuries." He adds, &#8220;The good news is that the Fed Put will probably make a quick comeback if this happens.&#8221;
Yardeni&#8217;s data showed the high-yield corporate spread widening to 407 bps by April 7th, signaling reduced investor confidence and economic concerns. Consequently, ETFs like iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>) and Invesco Senior Loan ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKLN#NYSE">BKLN</a>), which invest in high-yield corporate bonds and senior loans, have plunged 3.64% and 2.75% over the past five days, respectively.
Economist Peter Schiff warned that without an immediate rate cut and massive QE, the market could face a 1987-style crash.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As I warned earlier, the Treasury market is crashing. The yield on the 10-year just hit 4.5%, and the yield on the 30-year just hit 5%. Without an emergency rate cut tomorrow morning and the announcement of a massive QE program, tomorrow could be a 1987-style stock market crash.
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1909822222534955101?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote>
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<a href="https://www.benzinga.com/government/regulations/25/04/44705659/cathie-wood-points-to-serious-liquidity-issues-as-overnight-borrowing-rate-spreads-widen-on-spiking-treasury-yields-this-crisis-is-calling-out-for-some-kind-of-mar-a-lago-accord">Growing liquidity concerns</a> are evident in the widening 3-year SOFR swap spread, a key indicator of liquidity in the U.S. banking system. Ark Invest&#8217;s Cathie Wood urges a swift resolution through a trade agreement and aggressive Fed intervention, stating, &#8220;No more time to waste.&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As Zerohedge notes, this swap spread is suggesting serious liquidity issues in the US banking system. This crisis is calling out for some kind of Mar-a-Lago Accord on free trade, in tandem with serious support from the Fed? No more time to waste. <a href="https://t.co/5VXYqLJemJ">https://t.co/5VXYqLJemJ</a>
&mdash; Cathie Wood (@CathieDWood) <a href="https://twitter.com/CathieDWood/status/1909816910033678801?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote>
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Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Wednesday. The SPY was down 1.80% to $487.56, while the QQQ declined 1.67% to $409.12, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
As of Tuesday, the Nasdaq 100 has been in bear market territory, having fallen 23.10% from its prior peak of 22,222.61. The S&amp;P 500 also saw a significant decline of 18.95% from its Feb. 19 high of 6,147.43, while the Dow Jones was down 16.48% from its 52-week high.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/04/44705972/ford-motor-general-motors-to-witness-higher-demand-as-american-automotives-reap-the-fruit-of-protectionism-says-e">Ford, GM To Witness &#8216;Higher Demand&#8217; As American Carmakers Set To &#8216;Reap The Fruit Of Protectionism,&#8217; Says Expert: Here&#8217;s A List Of Potential Gainers And Losers From Trump Tariffs</a></li>
</ul>
Photo Courtesy: zignal_88 on Shutterstock.com

Shapiro's Treasury 'Market Dysfunction' Warning Hits Home: 'Buying More Gold' As Fed Put May Be On The Table

Following a jump in the U.S. Treasury yields, the Secured Overnight Financing Rate (SOFR) swap spreads have widened, signaling a &#8220;serious liquidity&#8221; issue, according to Ark Invest&#8217;s Cathie Wood. Experts believe that only the government and the Federal Reserve&#8217;s intervention would be able to contain this crisis.
What Happened: SOFR is a benchmark interest rate that reflects the cost of borrowing cash overnight, and it is used as a reference rate for various financial transactions.
On the other hand, the SOFR swap spread is the difference between the fixed rate in a SOFR-based interest rate swap and the yield on a government bond of the same maturity.
This surge in SOFR swap spread is a result of the dramatic rise in the 10-year Treasury bond yields, which are up from a recent low of 3.87% on April 4, which was two days after the &#8220;Liberation Day,&#8221; to 4.44% at the time of writing.
According to Wood, a widening negative SOFR swap spread is sending a distress signal pointing to a potential crisis of liquidity in U.S. banks.
She argues that this crisis necessitates a geopolitical solution through a trade agreement, which she terms the &#8220;Mar-a-Lago Accord,&#8221; and a monetary policy solution through aggressive intervention by the Federal Reserve.
She further underscores the severity of the situation by adding that there is &#8220;No more time to waste&#8221;.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As Zerohedge notes, this swap spread is suggesting serious liquidity issues in the US banking system. This crisis is calling out for some kind of Mar-a-Lago Accord on free trade, in tandem with serious support from the Fed? No more time to waste. <a href="https://t.co/5VXYqLJemJ">https://t.co/5VXYqLJemJ</a>
&mdash; Cathie Wood (@CathieDWood) <a href="https://twitter.com/CathieDWood/status/1909816910033678801?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote>
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Adding to this, Joseph Wang, the CIO at Monetary Macro said in an X post, &#8220;If the White House wants lower 10 year yields they need to speed up banking regulation reforms.&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Big tightening in SOFR swap spreads. If the White House wants lower 10 year yields they need to speed up banking regulation reforms. <a href="https://t.co/19PlN9cI4a">pic.twitter.com/19PlN9cI4a</a>
&mdash; Joseph Wang (@FedGuy12) <a href="https://twitter.com/FedGuy12/status/1909686590668259624?ref_src=twsrc%5Etfw">April 8, 2025</a></blockquote>
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See Also: Bear <a href="https://www.benzinga.com/25/04/44683084/bear-markets-hit-harder-and-last-longer-during-recessions-heres-a-historical-look-at-bear-market-severity-and-duration">Markets Hit Harder And Last Longer During Recessions, Says Strategist</a>
Why It Matters: The surge in yields suggests that bond prices are falling amid an ongoing market correction. Simplistically, this indicates that investors, who traditionally prefer investing in bonds during a stock market crash, are liquidating their positions. However, there is more at play here.
After President Donald Trump levied 104% tariff duties on China after the latter&#8217;s retaliation, Ed Yardeni of Yardeni Research suggests that &#8220;Fixed-income investors may be starting to worry that the Chinese and other foreigners might start selling their U.S. Treasuries.&#8221;
Moreover, the credit markets are also starting to show signs of stress as the yield spread between the high-yield corporate bond composite and the 10-year Treasury bond is widening rapidly.
According to the data shared by Yardeni, the high-yield corporate spread stood at 407 basis points as of April 7, indicating reduced investor confidence, economic slowdown, or recession fears.
Consequently, ETFs that invest in high-yield corporate bonds and in senior bank loans are starting to plunge.
The iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>) and Invesco Senior Loan ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKLN#NYSE">BKLN</a>) are down 3.64% and 2.75%, respectively, over the last five days.
&#8220;The good news is that the Fed Put will probably make a quick comeback if this happens,&#8221; said Yardeni.
Additionally, highlighting his concerns about rising yields, economist Peter Schiff said, &#8220;Without an emergency rate cut tomorrow morning and the announcement of a massive QE program, tomorrow could be a 1987-style stock market crash.&#8221;
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<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As I warned earlier, the Treasury market is crashing. The yield on the 10-year just hit 4.5%, and the yield on the 30-year just hit 5%. Without an emergency rate cut tomorrow morning and the announcement of a massive QE program, tomorrow could be a 1987-style stock market crash.
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1909822222534955101?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote>
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Price Action: As of Tuesday&#8217;s close, the Nasdaq 100 index was in bear market territory, down 23.10% from its previous record of 22,222.61 points. S&amp;P 500 was 18.95% lower from its latest Feb. 19 high of 6,147.43 points. Whereas, Dow Jones was 16.48% lower than its 52-week high of 45,073.63 points. 
The yield on the two-year Treasury stood at 3.77%, and the long-term 30-year bond yielded 4.92%. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, declined on Tuesday.
The SPY was down 1.57% to $496.48, while the QQQ advanced 1.80% to $416.06, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
On Wednesday, the future of Dow was lower by 2.32%, the S&amp;P 500 future declined 2.58%, and the Nasdaq 100 was down 2.63%.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/04/44679385/market-enters-risk-off-mode-as-analyst-predicts-this-signal-flashing-warnings-similar-to-2020-and-2008-crisis">Market Enters &#8216;Risk-Off&#8217; Mode As Analyst Predicts This Signal Flashing Warnings Similar To 2020, 2008 Crisis</a></li>
</ul>
Photo courtesy: Shutterstock

Cathie Wood Points To 'Serious Liquidity Issues' As Overnight Borrowing Rate Spreads Widen On Spiking Treasury Yields: 'This Crisis Is Calling Out For Some Kind Of Mar-a-Lago Accord'

As investors process shifting trade policies, inflation and geopolitical tensions, First Trust Advisors launches three new Target Income <a href="https://www.benzinga.com/etfs">ETFs aimed at boosting income</a> potential while maintaining fixed-income exposure. These actively managed funds each carry a net expense ratio of 0.65% and utilize option strategies to strengthen returns.
Also See: <a href="https://www.benzinga.com/content/43692114/3-dividend-etfs-to-maximize-passive-income">3 Dividend ETFs to Maximize Passive Income</a>
The three newly launched funds, FT Vest Investment Grade &amp; Target Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQTI#NYSE">LQTI</a>), FT Vest High Yield &amp; Target Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYTI#NYSE">HYTI</a>), and FT Vest 20+ Year Treasury &amp; Target Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LTTI#NYSE">LTTI</a>), offer a combination of U.S. Treasury securities with options-driven exposure to specific fixed-income sectors.
LQTI provides investment-grade corporate bond exposure through its underlying ETF, the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>). HYTI targets high-yield corporate bonds via the iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>). LTTI focuses on long-term U.S. Treasury exposure, tied to the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>).
Each fund utilizes FLEX options, which are customizable exchange-traded options designed to optimize risk and return. This is in effort to distribute income at an annual rate 5% higher than their underlying ETFs.
With over 160 ETFs listed in the U.S., First Trust continues to expand its roots in the income-focused investing space. One of its flagship funds, the First Trust Preferred Securities &amp; Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FPE#NYSE">FPE</a>), has more than $5 billion in assets under management.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/25/02/43710243/5-high-yield-dividend-etfs-by-yieldmax-that-investors-are-talking-about">5 High-Yield Dividend ETFs By YieldMax That Investors Are Talking About</a></li>
</ul>
Photo: Shutterstock

New ETFs

HYTI

LQTI

LTTI

iShares Trust Barclays 20+ Year Treasury Bond Fund

3 New Fixed-Income ETFs Use Options To Target Higher Income

As markets brace for the Federal Reserve's final policy meeting of the year, scheduled at 2:00 p.m. Wednesday, Goldman Sachs highlighted 20 exchange-traded funds (ETFs) that have historically shown outsized <a href="https://www.benzinga.com/topic/federal-reserve">moves around Fed decision days</a>.
While a 25-basis-point rate cut to a target range of 4.25%-4.50% is widely anticipated, the market's focus is on the Fed's forward guidance, particularly the Summary of Economic Projections (SEP) and the updated &#8220;dot plot.&#8221;
Following December's expected cut, Goldman Sachs projects a more measured pace of easing next year, forecasting rate cuts in March, June, and September, with the terminal rate seen at 3.50%-3.75%.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42554114/all-eyes-on-december-fed-meeting-as-traders-await-interest-rate-projections">All Eyes On December Fed Meeting As Traders Await Interest Rate Projections</a>
<h3 class="wp-block-heading">Market Dynamics Around Fed Days</h3>
U.S. equity markets have displayed strong short-term gains during Fed meeting weeks in 2024. 
Investors employing a simple strategy of buying the S&amp;P 500 index at market close before a Federal Open Market Committee (FOMC) announcement and selling at close the following day have captured median returns of 1.1% across the past seven meetings.
Yet those extending the trade horizon to 15 sessions post-Fed meeting have enjoyed significantly larger average gains of 3.29%, more than double the short-term returns. Notably, every Fed meeting this year has resulted in positive 15-day returns.
"We observe that U.S. banking ETFs, such as SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>) and SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), have seen unusually large moves on FOMC days since 2022" Goldman analysts wrote in a recent note.
For bond-focused investors, the report highlights consistent post-meeting gains in high-yield and investment-grade ETFs like iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>) and iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>).
Meanwhile, energy-focused ETFs, such as the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), have seen negative reactions. 
<h3 class="wp-block-heading">ETFs Showing Heightened Fed-Day Moves</h3>
Here's Goldman Sachs' list of 20 ETFs with the largest absolute moves – which include both positive and negative swing – on FOMC days:
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<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Focus</th>
<th>Average Absolute Move on FOMC since 2022</th>
<th>Average Absolute Move (Last 3 FOMC events)</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR S&amp;P Regional Banking ETF </td>
<td>Regional Banking</td>
<td>2.5%</td>
<td>1.5%</td>
</tr>
<tr>
<td>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)</td>
<td>Semiconductor</td>
<td>2.4%</td>
<td>3.7%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>)</td>
<td>Semiconductor</td>
<td>2.4%</td>
<td>3.3%</td>
</tr>
<tr>
<td>SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>)</td>
<td>US Large Banks</td>
<td>2.2%</td>
<td>1.3%</td>
</tr>
<tr>
<td>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>)</td>
<td>Biotech</td>
<td>2.0%</td>
<td>0.3%</td>
</tr>
<tr>
<td>United States Oil Fund </td>
<td>Oil</td>
<td>1.9%</td>
<td>2.0%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>Technology</td>
<td>1.9%</td>
<td>2.3%</td>
</tr>
<tr>
<td>iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>)</td>
<td>Silver</td>
<td>1.7%</td>
<td>2.4%</td>
</tr>
<tr>
<td>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>Nasdaq 100</td>
<td>1.7%</td>
<td>1.7%</td>
</tr>
<tr>
<td>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>Discretionary</td>
<td>1.6%</td>
<td>1.0%</td>
</tr>
<tr>
<td>iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>)</td>
<td>Russell 2000</td>
<td>1.5%</td>
<td>0.3%</td>
</tr>
<tr>
<td>SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</td>
<td>S&amp;P 500</td>
<td>1.2%</td>
<td>0.9%</td>
</tr>
<tr>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>S&amp;P 500</td>
<td>1.2%</td>
<td>0.9%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>Financial</td>
<td>1.1%</td>
<td>0.7%</td>
</tr>
<tr>
<td>SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)</td>
<td>Gold</td>
<td>0.9%</td>
<td>1.4%</td>
</tr>
<tr>
<td>iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMB#NASDAQ">EMB</a>)</td>
<td>EM Bond</td>
<td>0.8%</td>
<td>0.6%</td>
</tr>
<tr>
<td>iShares iBoxx $ High Yield Corporate Bond ETF </td>
<td>HY Corp Bond</td>
<td>0.6%</td>
<td>0.3%</td>
</tr>
<tr>
<td>iShares iBoxx $ Investment Grade Corporate Bond ETF </td>
<td>IG Corp Bond</td>
<td>0.6%</td>
<td>0.7%</td>
</tr>
<tr>
<td>iShares 7-10 Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IEF#NASDAQ">IEF</a>)</td>
<td>7-10 Year Treasury</td>
<td>0.6%</td>
<td>0.7%</td>
</tr>
<tr>
<td>iShares TIPS Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TIP#NYSE">TIP</a>)</td>
<td>TIPS Bond</td>
<td>0.5%</td>
<td>0.4%</td>
</tr>
<tr>
<td>Average</td>
<td></td>
<td>1.5%</td>
<td>1.3%</td>
</tr>
</tbody>
</table>
</figure>
Check Out: 
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Launched on 04/27/2016, the WisdomTree U.S. High Yield Corporate Bond ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/wfhy#BATS">WFHY</a>) is a smart beta exchange traded fund offering broad exposure to the High-Yield/Junk Bond ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor &amp; Index
The fund is managed by Wisdomtree. WFHY has been able to amass assets over $229.86 million, making it one of the average sized ETFs in the High-Yield/Junk Bond ETFs. This particular fund seeks to match the performance of the WisdomTree Fundamental U.S. High Yield Corporate Bond Index before fees and expenses.
The WisdomTree U.S. High Yield Corporate Bond Index is a rule-based alternatively weighted Index designed to capture the performance of selected issuers in the U.S. high yield corporate bond market that are deemed to have attractive fundamental and income characteristics.
Cost &amp; Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF&#39;s expense ratio.
Annual operating expenses for this ETF are 0.38%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 6.32%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it&#39;s still important for investors to research a fund&#39;s holdings.
Looking at individual holdings, Crescent Energy Finance&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crgy#NYSE">CRGY</a>) 7.25% 5/1/2026 accounts for about 0.74% of total assets, followed by Organon Finance&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ogn#NYSE">OGN</a>) 1 Llc 5.125% 4/30/2031 and Nationstar Mtg Hld Inc 6% 1/15/2027.
The top 10 holdings account for about 6.7% of total assets under management.
Performance and Risk
The ETF has gained about 0.76% so far this year and was up about 7.77% in the last one year (as of 04/10/2024). In the past 52-week period, it has traded between $42.17 and $45.77.
The ETF has a beta of 0.48 and standard deviation of 8.78% for the trailing three-year period. With about 476 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. High Yield Corporate Bond ETF is not a suitable option for investors seeking to outperform the High-Yield/Junk Bond ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
IShares Broad USD High Yield Corporate Bond ETF (USHY) tracks BofA Merrill Lynch U.S. High Yield Constrained Index and the iShares iBoxx $ High Yield Corporate Bond ETF (ARCA:HYG) tracks Markit iBoxx USD Liquid High Yield Index. IShares Broad USD High Yield Corporate Bond ETF&nbsp;(BATS: <a class="ticker" href="https://www.benzinga.com/stock/ushy#BATS">USHY</a>) has $11.56 billion in assets, iShares iBoxx $ High Yield Corporate Bond ETF has $16.26 billion. USHY has an expense ratio of 0.08% and HYG charges 0.49%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the High-Yield/Junk Bond ETFs.
<a href="https://www.zacks.com/stock/news/2253068/is-wisdomtree-u-s-high-yield-corporate-bond-etf-wfhy-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2253068">To read this article on Zacks.com click here.</a>

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Is WisdomTree U.S. High Yield Corporate Bond ETF (WFHY) a Strong ETF Right Now?

The performance of the U.S. corporate bond market in the first quarter of the year was generally flat, though there were notable distinctions between the high-grade <a href="https://www.benzinga.com/money/high-yield-bonds">and high-yield sectors. </a>
Bonds issued by companies with higher credit ratings (BBB and above) experienced a slight downward trajectory, as showed by the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>). Conversely, lower-rated companies boasting higher yields showed modestly positive performance, as indicated by the iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>).
Also Read: <a href="https://www.benzinga.com/news/large-cap/24/04/38098774/top-10-us-high-yield-corporate-bonds-with-returns-over-20-in-april-2024">Top 10 US High-Yield Corporate Bonds With Returns Over 20% In April 2024</a>
Below is a list of U.S. corporate bonds that have exhibited the strongest performance in the last three months.
<h3 class="wp-block-heading">10) Macy&#8217;s Retail Holdings LLC 4.3% 12/43</h3>
<ul>
<li>Issuer: Macy&#8217;s Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/M#NYSE">M</a>)</li>
<li>ISIN: US55616XAJ63</li>
<li>Last price: $82.08</li>
<li>Yield to maturity (%): 5.9712</li>
<li>Maturity: 15/02/2043</li>
<li>Minimum investment amount: $2,000</li>
<li>3-month performance: 15.83%</li>
</ul>
<h3 class="wp-block-heading">9) Ally Financial Inc. 4.7%</h3>
<ul>
<li>Issuer: Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>)</li>
<li>ISIN: US02005NBN93</li>
<li>Last price: $78.174</li>
<li>Type: subordinated</li>
<li>Minimum investment amount: $1,000</li>
<li>3-month performance: 16.91%</li>
</ul>
<h3 class="wp-block-heading">8) Lincoln National Corp. 7.938% 06/66</h3>
<ul>
<li>Issuer: Lincoln National Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LNC#NYSE">LNC</a>)</li>
<li>ISIN: US534187AS84</li>
<li>Last price: $74.73</li>
<li>Maturity: 17/05/2066</li>
<li>Minimum investment amount: $2,000</li>
<li>3-month performance: 17.87%</li>
</ul>
<h3 class="wp-block-heading">7) Carvana Co. 5.875% 20/28</h3>
<ul>
<li>Issuer: Carvana Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>)</li>
<li>ISIN: USU1468GAD61</li>
<li>Last price: $65.00</li>
<li>Yield to maturity (%): 18.1963</li>
<li>Maturity: 01/10/2028</li>
<li>Minimum investment amount: $2,000</li>
<li>3-month performance: 20.37%</li>
</ul>
<h3 class="wp-block-heading">6) Braskem America Finance Co. 7.125% 11/41</h3>
<ul>
<li>Issuer: Braskem S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAK#NYSE">BAK</a>)</li>
<li>ISIN: USU1065PAA94</li>
<li>Last price: $90.85</li>
<li>Yield to maturity (%): 8.2834</li>
<li>Maturity: 15/02/2043</li>
<li>Minimum investment amount: $200,000</li>
<li>3-month performance: 20.5%</li>
</ul>
<h3 class="wp-block-heading">5) M.D.C. Holdings Inc. 3.966% 21/61</h3>
<ul>
<li>Issuer: M.D.C. Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MDC#NYSE">MDC</a>)</li>
<li>ISIN: US55616XAJ63</li>
<li>Last price: $82.08</li>
<li>Yield to maturity (%): 5.9712</li>
<li>Maturity: 15/02/2043</li>
<li>Minimum investment amount: $2,000</li>
<li>3-month performance: 23.53%</li>
</ul>
<h3 class="wp-block-heading">4) QVC Inc. 5.95% 13/43</h3>
<ul>
<li>Issuer: QVC Inc.</li>
<li>ISIN: US747262AM52</li>
<li>Last price: $64.53</li>
<li>Yield to maturity (%): 10.4849</li>
<li>Maturity: 15/03/2043</li>
<li>Minimum investment amount: $1,000</li>
<li>3-month performance: 23.76%</li>
</ul>
<h3 class="wp-block-heading">3) At Home Group Inc. 4.875% 21/28</h3>
<ul>
<li>Issuer: At Home Group Inc.</li>
<li>ISIN: USU04798AA90</li>
<li>Last price: $47.61</li>
<li>Yield to maturity (%): 27.4573</li>
<li>Maturity: 15/07/2028</li>
<li>Minimum investment amount: $2,000</li>
<li>3-month performance: 26.38%</li>
</ul>
<h3 class="wp-block-heading">2) Lumen Technologies Inc. 4.5% 20/29</h3>
<ul>
<li>Issuer: Lumen Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUMN#NYSE">LUMN</a>)</li>
<li>ISIN: USU1566PAD79</li>
<li>Last price: $36.32</li>
<li>Yield to maturity (%): 33.1453</li>
<li>Maturity: 15/01/2029</li>
<li>Minimum investment amount: $2,000</li>
<li>3-month performance: 27.01%</li>
</ul>
<h2 class="wp-block-heading">Chart: Lumen Technologies Bond Outperforms Lumen Shares In 2024</h2>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113118/image-8-1024x495.png" alt="" class="wp-image-277973" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113118/image-8-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113118/image-8-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113118/image-8-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113118/image-8-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113118/image-8.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">1) Beyond Meat Inc. 0.000% 21/27</h3>
<ul>
<li>Issuer: Beyond Meat Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BYND#NASDAQ">BYND</a>)</li>
<li>ISIN: US08862EAB56</li>
<li>Last price: $23.87</li>
<li>Maturity: 15/03/2027</li>
<li>Minimum investment amount: $1,000</li>
<li>3-month performance: 28.08%</li>
</ul>
<h2 class="wp-block-heading">Chart: Beyond Meat Bonds Outperform Shares In 2024</h2>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113716/image-9-1024x495.png" alt="" class="wp-image-277986" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113716/image-9-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113716/image-9-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113716/image-9-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113716/image-9-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/04113716/image-9.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Why Have Beyond Meat Bonds Outperformed Shares?</h2>
Beyond Meat reported higher than expected revenue in the fourth quarter of 2023, yet suffered larger losses than anticipated. Following the earnings announcement, the company committed to significantly cutting costs and enhancing manufacturing efficiency. 
These efforts improved the outlook on the company&#8217;s ability to fulfill its debt obligations, boosting investor confidence in Beyond Meat&#8217;s survival prospects, rather than reflecting a true turnaround in its long-term profitability.
Following its earnings report, Beyond Meat saw an initial market enthusiasm with rises in both bonds and shares. However, while bond values maintained their upward trajectory, the stock&#8217;s gains quickly dissipated, reversing the post-earnings uplift. 
Since the beginning of the year, Beyond Meat&#8217;s zero-coupon bond, due to mature in March 2027, has seen a notable increase of 28%, contrasting with a roughly 6% drop in the company&#8217;s share price.
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38091433/ai-revolution-is-underway-yet-its-economic-impact-is-several-years-off-goldman-sach">AI Revolution Is Underway, Yet Its Economic Impact Is &#8216;Several Years Off&#8217;: Goldman Sachs</a>
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Top 10 US Corporate Bonds By Market Performance In 2024: April Update

As U.S. interest rates continue to hover at their highest level in over two decades, investors are increasingly drawn to the realm of high-yield corporate bonds, seeking both lucrative returns and <a href="https://www.benzinga.com/money/high-yield-bonds">a diversification from stocks. </a>
The U.S. high-yield corporate bond market, as tracked by the iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>), has exhibited positive performance of late, surging by 10% from the depths seen in October 2023. 
It&#8217;s important to remember that when it comes to bonds, rates and prices move in opposite directions, meaning that as rates increase, prices decrease and vice versa.
For many traders eyeing the potential for interest rate cuts by the Federal Reserve in 2024, this could merely signify the start of a new long-term uptrend for the corporate bond market. 
Read also: <a href="https://www.benzinga.com/yield-investments">BEST HIGH YIELD INVESTMENTS TO EARN</a>
Navigating the terrain of high-yield bonds demands caution. 
High-yield bonds, also called junk bonds, are corporate bonds issued by companies with lower credit ratings than safer investment-grade bonds. These bonds receive speculative ratings below BBB from agencies like Standard &amp; Poor&#8217;s, Moody&#8217;s or Fitch. 
Behind the allure of lofty returns lies a stark reality: heightened risk. The golden rule of investment resonates loudly here — the higher risk of a company not meeting its obligations, the higher the potential reward for investors.
For those wary of investing in stocks due to a company&#8217;s bleak profit outlook, turning to bonds presents an alternative strategy by banking on the company&#8217;s potential survival until maturity.
As investors seek to capitalize on the potential rewards of these high-yield bonds, they must remain vigilant, recognizing that every glittering opportunity carries its own share of peril.
<h3 class="wp-block-heading">Top 10 US Corporate Bonds With The Highest Yield To Maturity As Of April 2024</h3>
The following are the top 10 high-yielding U.S. corporate bonds as of early April 2024, according to Public.com&#8216;s bond screener:
<ol>
<li>AMC 6.125% 05/15/2027
<ul>
<li>Issuer: AMC Entertainment Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>)</li>
<li>Yield: 34.19%</li>
<li>Coupon: 6.125%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $48.62</li>
<li>Maturity: 05/15/2027</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>SATSX 6.625% 08/01/2026
<ul>
<li>Issuer: Hughes Satellite Systems Corp., fully owned by Echostar Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SATS#NASDAQ">SATS</a>) </li>
<li>Yield: 33.81%</li>
<li>Coupon: 6.625%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $58.47</li>
<li>Maturity: 08/01/2026</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>DISH 7.375% 07/01/2028
<ul>
<li>Issuer: Dish Network Corporation</li>
<li>Yield: 30.74%</li>
<li>Coupon: 7.375%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $46.55</li>
<li>Maturity: 07/01/2028</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>LUMN 6.875% 01/15/2028 
<ul>
<li>Issuer: Lumen Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUMN#NYSE">LUMN</a>)</li>
<li>Yield: 30.71%</li>
<li>Coupon: 6.875%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $48.70</li>
<li>Maturity: 01/15/2028</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>OPI 2.4% 02/01/2027
<ul>
<li>Issuer: Office Properties Income Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OPI#NYSE">OPI</a>)</li>
<li>Yield: 30.45%</li>
<li>Coupon: 2.4%</li>
<li>Price: $49.26</li>
<li>Maturity: 02/01/2027</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>OPI 2.65% 06/15/2026
<ul>
<li>Issuer: Office Properties Income Trust </li>
<li>Yield: 29.82%</li>
<li>Coupon: 2.65%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $58.38</li>
<li>Maturity: 06/15/2026</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>OPI 4.5% 02/01/2025
<ul>
<li>Issuer: Office Properties Income Trust </li>
<li>Yield: 28.37%</li>
<li>Coupon: 4.5%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $83.48</li>
<li>Maturity: 02/01/2025</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>AMC 5.875% 11/15/2026
<ul>
<li>Issuer: AMC Entertainment Holdings</li>
<li>Yield: 28.31%</li>
<li>Coupon: 5.875%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $60.42</li>
<li>Maturity: 11/15/2026</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>DISH 5.125% 06/01/2029
<ul>
<li>Issuer: Dish Network Corporation</li>
<li>Yield: 27.46%</li>
<li>Coupon: 5.125%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $40.22</li>
<li>Maturity: 06/01/2029</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
<li>AMC 5.75% 06/15/2025
<ul>
<li>Issuer: AMC Entertainment Holdings</li>
<li>Yield: 25.06%</li>
<li>Coupon: 5.75%</li>
<li>Coupon Frequency: Semi-annually</li>
<li>Price: $81.03</li>
<li>Maturity: 06/15/2025</li>
<li>Rating: Speculative grade</li>
</ul>
</li>
</ol>
Read now: <a href="https://www.benzinga.com/money/best-high-yield-etfs-right-now">Best High-Yield ETFs Right Now</a>
Photo via Shutterstock.

Top 10 US High-Yield Corporate Bonds With Returns Over 20% In April 2024

Economist Jared Bernstein has recently discussed the state of consumer debt in the U.S., shedding light on its gradual return to <a href="https://www.benzinga.com/topic/economics">pre-pandemic levels</a>.
What Happened: In an <a href="https://www.bloomberg.com/news/articles/2023-12-31/us-consumer-debt-just-returning-to-normal-levels-jared-bernstein-says?srnd=markets-vp&amp;sref=TBDibEcD">interview</a> with Bloomberg, Bernstein said this development signifies a positive step forward in the ongoing conversations about the nation&#39;s economic recovery and financial stability.
Bernstein elaborated on the surge in consumer debt that occurred during the COVID-19 pandemic.
He attributed this spike to the exceptional circumstances created by the health crisis, including widespread job losses and economic uncertainties.
Many Americans were compelled to rely on credit cards and loans to cover essential expenses, leading to historically high levels of consumer debt.
The situation is gradually improving, Bernstein said. As the economy rebounds and job opportunities expand, individuals are better equipped to manage their debts, he said.&nbsp;
This positive trend is anticipated to bolster economic recovery, as consumers with more manageable debt levels are likely to increase their spending, contributing to overall economic growth.
Additionally, Bernstein emphasized the importance of ongoing government support, such as stimulus checks and enhanced unemployment benefits, in assisting Americans in coping with the financial challenges brought on by the pandemic.
These measures have played a crucial role in providing relief to many households and preventing more severe economic hardships.
While acknowledging the presence of inflation in the economic landscape, Bernstein said it has not significantly impacted consumer debt repayment.
Also Read:&nbsp;<a href="https://www.benzinga.com/news/23/11/35740812/finance-experts-are-strongly-encouraging-consumers-to-save-as-much-as-they-can-this-holiday-season-h">Finance Experts Are Strongly Encouraging Consumers To Save As Much As They Can This Holiday Season &mdash; Here&#39;s Why</a>
He argued that addressing inflation concerns should not overshadow the progress made in stabilizing consumer debt levels, which is essential for the nation&#39;s broader economic health.
According to the report, credit card companies, including Visa Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/v#NYSE">V</a>), Mastercard Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ma#NYSE">MA</a>), American Express Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axp#NYSE">AXP</a>)&nbsp;and Discover Financial Services (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dfs#NYSE">DFS</a>), indicate a gradual decrease in consumer credit card balances.
This trend aligns with Bernstein&#39;s assessment of improving consumer debt conditions.
In the exchange-traded funds&nbsp;space, funds like iShares iBoxx Investment Grade Corporate Bond ETF (NYSEARCA: LQD) and iShares iBoxx High Yield Corporate Bond ETF (NYSEARCA: HYG) have been influenced by the dynamics of consumer debt&nbsp;given their exposure to corporate bonds.
Investors in these ETFs closely monitor consumer debt trends as they can impact the creditworthiness of corporate issuers.
In conclusion, Bernstein&#39;s insights offer a hopeful perspective on the trajectory of consumer debt in the United States, suggesting&nbsp;the nation is on a path towards greater financial stability in the post-pandemic era.
Now Read:&nbsp;<a href="https://www.benzinga.com/news/23/10/35256397/americans-face-historic-lack-of-affordability-in-housing-market-data-shows" target="_blank">Americans Face Historic Lack Of Affordability In Housing Market, Data Shows</a>
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock.&nbsp;

Personal Finance

US Consumer Debt Moves Toward Pre-COVID Levels: Economist Shares Top Takeaways

For the first quarter of 2024, JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) is for overweight U.S. equity, Japanese equity, U.S. Treasury and high-yield corporate debt. The company said &#8220;cash returns are <a href="https://www.benzinga.com/markets/equities/23/11/35614060/warren-buffett-led-berkshire-hathways-ginormous-157b-cash-pile-is-nearing-levels-held-by-one-of-">set to fall</a>&#8221; and the U.S. stock market would &#8220;likely see the S&amp;P 500 test the 5,000 l<a href="https://www.benzinga.com/news/23/12/36229445/amazon-and-alphabet-top-picks-for-2024-jpmorgan-bets-on-continued-mega-cap-tech-rally">evel in 2024</a>.&#8221;
Read: <a href="https://www.benzinga.com/economics/23/12/36069647/2024-outlook-put-pause-pivot">2024 Outlook: Put, Pause, Pivot</a>
John Bilton, head of Global Multi-Asset Strategy at JPMorgan, and his team <a href="https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/portfolio-insights/pi-gaav.pdf">shared</a> insights from the Multi-Asset Solutions Strategy Summit they had recently.
&#8220;We see positive U.S. stock performance broadening beyond tech as an improving U.S. inventory cycle boosts cyclical sectors,&#8221; said Bilton. &#8220;Japanese stocks remain attractive, given rerating potential driven by corporate governance reforms.&#8221;
Here&#8217;s a quick look at their perspective on each asset class and few trading ideas around them (added by author):
<h2 class="wp-block-heading">Equity</h2>
JPMorgan is overweight on U.S., U.K. and Japanese equity, and underweight on European equity and Emerging Markets (ex-China).
<ul>
<li>U.S.: Expectations for an earnings growth estimate of 7% into the next year. Lower rates to provide support to stock multiples. Cash generation potential in U.S. equity. Equities outlook is also improving as the earnings downgrade cycle appears to be bottoming. The SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard 500 Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are popular funds to gain exposure to broad-market U.S. equity.</li>
<li>U.K.: U.K. equity is cheap and supported by valuations and flows. It is a defensive market; with a positive gearing towards commodities. The iShares MSCI United Kingdom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWU#NYSE">EWU</a>) is a popular U.K. equity tracking ETF.</li>
<li>Japan: Japanese stocks remain attractive. There&#8217;s rerating potential, given improving nominal growth in the country and scope for valuation expansion. The corporate governance reforms mandated by the Tokyo Stock Exchange should support shareholder returns and drive up ROE. The iShares MSCI Japan ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWJ#NYSE">EWJ</a>) offers exposure to Japanese equity.</li>
<li>Europe: European growth is expected to remain sluggish going into 2024. </li>
<li>EM: Emerging market equities, though cheap, lack clear catalysts for a rebound. </li>
</ul>
<h2 class="wp-block-heading">Fixed-Income</h2>
From the fixed-income space, JPMorgan is overweight U.S. Treasury and high-yield corporate. It is underweight EMD hard currency.
<ul>
<li>The prospect of rate cuts in 2024 supports a duration overweight position. Yields may begin to fall steadily as rate cuts begin.</li>
<li>Investors should prefer U.S. Treasuries to other G4 countries. Yields in the low 4s should be attractive ahead of Fed rate cuts. JPMorgan sees potential returns of 10%–20% if growth disappoints. The iShares 20+ Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NYSE">TLT</a>), the iShares 7-10 Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEF#NYSE">IEF</a>) and the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>) are popular ways to get exposure to U.S. Treasury.</li>
<li>Overweight corporate high-yield debt as there&#8217;s modest scope for spread tightening. Fundamentals appear supportive with limited rise in defaults. Overall, the carry looks attractive. The iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>) and the iShares Broad USD High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USHY#NYSE">USHY</a>) are two of the largest ETFs providing exposure to high-yield corporate debt in the U.S.</li>
</ul>
<h2 class="wp-block-heading">Currency &amp; Cash</h2>
The US dollar, as tracked by the Invesco DB US Dollar Index Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), appears set to weaken in 2024. JPMorgan sees a soft landing for the greenback as growth broadens out globally.
Rate cuts possibility in the U.S. further supports a US dollar underweight position.
Bilton is also underweight on cash. &#8220;Cash returns set to fall as cutting cycle begins; long-term USD rates likely nearer 2.5% than 5.5%,&#8221; he laid out.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/11/35837453/goldman-sachs-2024-equity-outlook-winning-stocks-and-sectors-to-watch">Goldman Sachs&#8217; 2024 Equity Outlook: Winning Stocks And Sectors To Watch</a>

Global

PowerShares DB US Dollar Index Bullish Fund

S&P 500 Likely To 'Test The 5,000 Level': JP Morgan On Where To Allocate In 2024

In recent weeks, several bond exchange-traded funds (ETFs) have experienced a significant surge in inflows, indicating a <a href="https://www.benzinga.com/money/best-bond-etf">heightened interest among investors. </a>
This shift coincided with a market that significantly upped bets on Federal Reserve rate cuts for 2024, backed by a robust and ongoing <a href="https://www.benzinga.com/topic/inflation">disinflationary trend</a> in the U.S. economy. 
Speculators have gone as far as factoring in an initial rate cut as early as March 2024, with whispers of a total of five rate cuts by December 2024.
But which bond ETFs are currently piquing investors&#8217; interest?
<h2 class="wp-block-heading">From &#8216;Cash-Like&#8217; to &#8216;Equity-Like&#8217;</h2>
While the third quarter in 2023 witnessed a notable uptick in inflows into cash-linked bond ETFs, primarily those investing in short-dated Treasury bonds and bills, the latest trends are veering towards more aggressive fixed-income strategies.
Investors are strategically positioning themselves in anticipation of an imminent U-turn in Fed&#8217;s monetary policy stance, eyeing a select group of bond ETFs that have weathered the storm during the recent spate of interest rate hikes.
Their bullish stance on riskier bond ETFs underscores a burgeoning belief that the bond market landscape could undergo a substantial recalibration in the coming months, as they brace for a more accommodating monetary policy environment.
These ETFs encompass a diverse range, including long-term Treasury bonds, emerging-market bonds, and high-yield corporate bonds. 
<h2 class="wp-block-heading">Top 10 Bond ETFs by Fund Inflows in the Past Month</h2>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Name</th>
<th>Fund Flows (1-month)</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares Trust &#8211; iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>)</td>
<td>$3.69 bn</td>
</tr>
<tr>
<td>iShares Trust &#8211; iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>)</td>
<td>$2.62 bn</td>
</tr>
<tr>
<td>SPDR Series Trust &#8211; SPDR Bloomberg High Yield Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNK#NYSE">JNK</a>)</td>
<td>$1.99 bn</td>
</tr>
<tr>
<td>iShares Trust &#8211; iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMB#NASDAQ">EMB</a>)</td>
<td>$1.89 bn</td>
</tr>
<tr>
<td>iShares Trust &#8211; iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>)</td>
<td>$1.62 bn</td>
</tr>
<tr>
<td>Vanguard Bond Index Funds &#8211; Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>)</td>
<td>$1.56 bn</td>
</tr>
<tr>
<td>iShares Trust &#8211; iShares Broad USD High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USHY#NYSE">USHY</a>)</td>
<td>$1.31 bn</td>
</tr>
<tr>
<td>Vanguard Scottsdale Funds &#8211; Vanguard Long-Term Treasury ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VGLT#NASDAQ">VGLT</a>)</td>
<td>$665.99 bn</td>
</tr>
<tr>
<td>Vanguard Charlotte Funds &#8211; Vanguard Total International Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNDX#NASDAQ">BNDX</a>)</td>
<td>$641.06 bn</td>
</tr>
<tr>
<td>iShares Trust &#8211; iShares 5-10 Year Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGIB#NYSE">IGIB</a>)</td>
<td>$216.67 bn</td>
</tr>
</tbody>
</table>
</figure>
Read Now: <a href="https://www.benzinga.com/etfs/specialty-etfs/23/12/36075348/golds-record-high-why-havent-gold-miners-followed-suit">Gold&#8217;s Record High: Why Haven&#8217;t Gold Miners Followed Suit?</a>
Photo: Shutterstock

Emerging Markets

BNDX

IGIB

VGLT

Investors Pour Billions To Aggressive Bond ETFs, Banking On Multiple Fed Rate Cuts in 2024

We performed a screening of large-cap ETFs, defined as having Assets Under Management (AUM) above $10 billion &#8211; to determine what funds had the largest positive and negative returns on the week, according to data from <a href="http://etfdb.com">etfdb.com</a>. Only non-leveraged funds were considered.
<h2 class="wp-block-heading">Winners</h2>
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)
SPY added $502.21 million in net assets over the trailing week.
Launched in January 1993, SPY was the very first exchange-traded fund listed in the US. The fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&amp;P 500 Index, a diversified large-cap U.S. index that holds companies across all eleven GICS sectors.
SPY has $401.56 billion in AUM and an expense ratio of 0.09%. The fund has holdings in 1000 companies, with the 10 largest comprising 39.34% of the fund.
The fund's largest holdings are Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) making up 7.19% and 6.51% of the fund, respectively.
SPY lost $2.62 billion in net assets YTD.
SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>)
BIL was up $490.03 million in AUM on the week.
The SPDR Bloomberg 1-3 Month T-Bill ETF provides exposure to the ultrashort bond market.
The fund has $33.77 billion in AUM and an expense ratio of 0.14%.
YTD, BIL is up $7.65 billion in AUM.
<h2 class="wp-block-heading">Losers</h2>
iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>)
HYG lost $1.01 billion in net assets over the trailing week.
The iShares iBoxx $ High Yield Corporate Bond ETF offers exposure to a large swath of the dollar-denominated high-yield corporate bond market.
HYG has $12.94 billion in AUM and an expense ratio of 0.49%.
HYG has lost $3.67 billion in net assets YTD.
SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)
GLD lost $871.39 million in net assets over the trailing week.
SPDR Gold Shares provide exposure to gold without the need to personally own bullion. The price will move synchronously with the spot price of gold.
GLD has $51.48 billion in AUM and an expense ratio of 0.40%.&nbsp;
GLD lost $3.76 billion in net assets YTD.

AAPL

MSFT

Despite 3% Increase In Spot Price Of Gold, GLD Loses Close To A Billion In AUM - ETF Winners And Losers: Large-Cap Flows

Goldman Sachs&#8217; U.S. economist, Jan Hatzius dialed down the U.S. recession risk further in a Tuesday note. The latest insights from the investment giant reveal the 12-month U.S. recession probability now stands at a mere 15%, down 5 percentage points <a href="https://www.benzinga.com/topic/recession">from their previous estimate.</a>
Goldman Sachs&#8217; unwavering optimism in the U.S. economy&#8217;s resilience has been a talking point on Wall Street over the past year. While others have been cautious, if not bearish, Goldman Sachs has remained firmly in the bull camp. The contrast between Goldman Sachs&#8217; 15% U.S. recession probability and the Bloomberg consensus, which indicates a 60% likelihood of recession, is now striking.
<h2 class="wp-block-heading">The US Economy&#8217;s Wildcard: Strong Fundamentals</h2>
Goldman Sachs points to several factors supporting their rosy outlook. They anticipate a resurgence in household real disposable income by 2024, driven by robust job growth and increasing real wages. 
Furthermore, Hatzius stated that he strongly disagrees with the assumption that an increasing and prolonged drag from high interest rates will force the economy into recession.
Despite a slight uptick in unemployment to 3.8% in August, Goldman Sachs remains unfazed. They attribute this rise to an increase in labor force participation and emphasize that key employment indicators remain strong.
Goldman Sachs anticipates the Federal Reserve to take a measured approach. On the one hand, they think that they are done with rate hikes. On the other, they acknowledge that swift interest rate cuts are unlikely unless economic conditions worsen significantly. The bank projects only a gradual rate cut cycle starting in Q2 2024. 
<h2 class="wp-block-heading">Quandary For Investors</h2>
In the wake of Goldman Sachs&#8217; positive stance on the economy, investors are left pondering their investment strategies. 
The equity and credit strategists at the investment bank suggest that the era of strong stock market gains may have peaked.
&#8220;Equity markets have lost momentum in the last month despite the positive economic news.&#8221;
Analysts at Goldman Sachs believe that both investment-grade (IG) and high-yield (HY) bonds will offer excess returns in the upcoming period. 
U.S. IG bonds are tracked by the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>), while HY bonds are tracked by iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>). 
Read now: <a href="https://www.benzinga.com/markets/equities/23/09/34239445/oil-markets-roar-as-saudi-arabia-russia-extend-production-cuts-3-oil-stocks-with-huge-upside-pot">Oil Markets Roar As Saudi Arabia, Russia Extend Production Cuts: 3 Oil Stocks With Huge Upside Potential</a>
Photo: Shutterstock.

Why Goldman Sachs Is Increasingly Confident In Dodging Recession, Contrary To Wall Street Consensus

With escalating interest rates and inflationary pressures, the resiliency of bond investments is being put to the test. Investors find themselves watching helplessly as bond prices undergoe a relentless downward spiral, battered by the unrelenting blows <a href="https://www.benzinga.com/money/what-is-a-bond">of surging borrowing costs.</a>
The tumultuous events of 2022 bear witness to this challenge, as the global bond market endured one of its most turbulent years on record. Hopes were high for a turnaround at the onset of 2023, yet reality proved otherwise. The bond market&#8217;s sell-off persisted with Treasury yields soaring to multi-decade highs. 
The 10-year Treasury yield briefly hit 4.33% yield this week, surging to levels last seen in October 2022, and in 2007, while the duration-sensitive 30-year yield hit 4.42%, the highest since the summer of 2011. 
<h2 class="wp-block-heading">Chart: US Treasury Yields Soared In August</h2>
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="845" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/18123539/US10Y_2023-08-18_18-35-24_e8c31-1024x845.png" alt="" class="wp-image-90336" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/18123539/US10Y_2023-08-18_18-35-24_e8c31-1024x845.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/18123539/US10Y_2023-08-18_18-35-24_e8c31-300x248.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/18123539/US10Y_2023-08-18_18-35-24_e8c31-768x634.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/18123539/US10Y_2023-08-18_18-35-24_e8c31.png 1309w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
These yields acted as a gravitational force, exerting influence over the broader bond market. As the world&#8217;s preeminent risk-free rate witnesses a surge, a chain reaction is set in motion, resulting in a universal uptick in bond yields that spares no issuer.
However, as with every trade-off, there&#8217;s a catch. Witnessing bond markets yielding close to or surpassing the 6% annual mark – not far from the Dow Jones Index&#8216;s 6.6% annualized return over the past three decades – is sparking the interest of even those who once regarded bonds as a sacrificial lamb to the inflationary onslaught.
Indeed, while the Federal Reserve remains steadfast in its stance against short-term rate reductions, a downward trend in inflation has also taken shape over the past year. This, in turn, has given rise to positive &#8220;real rates&#8221; in the bond market – a configuration largely foreign to an era defined by ultra-accommodative monetary policies and rates that hovered perilously close to zero.
Read now: <a href="https://www.benzinga.com/money/how-to-buy-treasury-bonds">How to Buy Treasury Bonds</a>
<h2 class="wp-block-heading">What Does The Yield To Maturity Mean For A Bond ETF?</h2>
In the universe of bond investing, the concept of yield to maturity (YTM) reigns supreme, representing the potential annualized return an investor may glean from holding a bond until its maturity date.
However, when applied to the intricate world of exchange-traded funds (ETFs) housing an array of bonds, caution must be exercised. While the YTM offers a glimpse into the potential return from holding an ETF until its underlying bonds reach maturity, the reality rarely involves such a straightforward definition, since bond ETFs do not commonly hold securities until maturity. 
One should note that the YTM assumes reinvestment of coupon payments at the same yield, an assumption not always perfectly aligned with real-world scenarios.
Nonetheless, despite its intricacies, the YTM remains a valuable benchmark for assessing the comparative potential of various bond ETFs, offering investors an informative lens through which to evaluate potential returns.
<h2 class="wp-block-heading">5 Bond ETFs Delivering Over 6% Yield To Maturity</h2>
<ol>
<li>iShares BBB Rated Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQDB#NYSE">LQDB</a>)</li>
</ol>
Attractive yields are not exclusive to the realm of speculative securities. Enter American BBB-rated corporate bonds – the last frontier before crossing into high-yield territory. With the iShares BBB Rated Corporate Bond ETF, investors gain access to an index comprising BBB (or equivalent) fixed-rate U.S. dollar-denominated bonds issued by corporate entities, both domestic and international.
<ul>
<li>Average Yield to Maturity: 5.94% as of Aug. 17, 2023</li>
<li>Year-to-date Return: 1.43%</li>
<li>Expense Ratio: 0.15%</li>
</ul>
2. iShares 10+ Year Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGLB#NYSE">IGLB</a>)
Venturing deeper into investment-grade territory, extending maturity to over a decade unveils yields of 6%. The iShares 10+ Year Investment Grade Corporate Bond ETF provides exposure to U.S. dollar-denominated investment-grade corporate bonds with maturities surpassing 10 years.
<ul>
<li>Average Yield to Maturity: 5.97% as of Aug. 17, 2023</li>
<li>Year-to-date Return: 0.17%</li>
<li>Expense Ratio: 0.04%</li>
</ul>
3. iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>)
Descending further into the hierarchy, the &#8220;high yield&#8221; realm beckons, offering higher potential returns in tandem with elevated risk – adhering to investment&#8217;s age-old adage. The iShares iBoxx $ High Yield Corporate Bond ETF tracks an index comprising U.S. dollar-denominated high-yield corporate bonds.
<ul>
<li>Average Yield to Maturity: 8.53% as of Aug. 17, 2023</li>
<li>Year-to-date Return: 4.75%</li>
<li>Expense Ratio: 0.49%</li>
</ul>
4. BondBloxx CCC Rated USD High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XCCC#NYSE">XCCC</a>)
Venturing closer to the brink of default, the realms of CCC, CC, and C ratings herald the epitome of high-yield. Reflecting the poor credit quality of these enterprises, yields surge even higher. 
The BondBloxx CCC Rated USD High Yield Corporate Bond ETF tracks bonds rated CCC1 through CCC3, forming an average based on major rating agencies. With risk at the forefront, issuer exposure is capped at 2% of the portfolio&#8217;s weight.
<ul>
<li>Average Yield to Maturity: 13.02% as of Aug. 17, 2023</li>
<li>Year-to-date Return: 2.98%</li>
<li>Expense Ratio: 0.40%</li>
</ul>
5. iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMB#NYSE">EMB</a>)
Shifting our gaze to the exotic world of emerging markets, the realm of dollar-denominated bonds currently unveils attractive yields. 
The iShares J.P. Morgan USD Emerging Markets Bond ETF grants access to U.S. dollar-denominated bonds from emerging markets, presenting a yield exceeding 7.5% as of this article&#8217;s publication.
<ul>
<li>Average Yield to Maturity: 7.59% as of Aug. 17, 2023</li>
<li>Year-to-date Return: 2.34%</li>
<li>Expense Ratio: 0.39%</li>
</ul>
Read also: <a href="https://www.benzinga.com/money/how-to-buy-corporate-bonds">How to Buy Corporate Bonds</a>
Photo: Shutterstock

IGLB

LQDB

BondBloxx ETF Trust BondBloxx CCC-Rated USD High Yield Corporate Bond ETF

XCCC

The Magic 6%: These 5 Bond ETFs Now Offer Stock-Like Returns As Treasury Yields Jump To Multi-Decade Highs

The debt limit talk&nbsp;has&nbsp;reached its&nbsp;last and most important stage&nbsp;with just five days, or barely more than 100 hours, until the U.S. Treasury may&nbsp;<a href="https://www.benzinga.com/topic/debt-ceiling" target="_blank">run&nbsp;out of money.&nbsp;</a>
Both the stock and the bond market&nbsp;are likely to react strongly depending whether a deal is reached or not, or if any other surprises arise at the end. Treasury yields could also see sharp swings on sensitive headlines in the coming hours.&nbsp;
Negotiators for the White House and the Republican Party&nbsp;are scrambling to avert a historic and probably catastrophic U.S. default, as Treasury Secretary Janet Yellen predicted &quot;early June&quot; as the date when the government&#39;s cash won&#39;t be able to meet all payments due.&nbsp;
Read Also:&nbsp;<a href="https://www.benzinga.com/government/23/05/32593845/congressional-debt-ceiling-talks-gain-momentum-critical-deal-in-sight-because-default-is-unacceptabl" target="_blank">Congressional Debt Ceiling Talks Gain Momentum, Critical Deal In Sight &#39;Because Default Is Unacceptable&#39;: Report</a>
The odds of an agreement being revealed late on Friday, May 26&nbsp;or on Saturday, May 27, with a House vote the following week are the highest, according to Goldman Sachs&nbsp;Chief Economist&nbsp;Jan Hatzius.&nbsp;
Goldman Sachs&#39; baseline forecasts see the U.S. Treasury reaching its minimal cash level on June 6, with funds totally depleted by June 9 if the debt limit is not raised.&nbsp;
Benzinga highlighted&nbsp;how these&nbsp;five bond ETFs could react&nbsp;to debt limit announcements in the coming hours.&nbsp;
1) IShares 0-3 Month Treasury Bond ETF (ARCA: SGOV)
The fund managed by Blackrock Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>) invests in Treasury bills with maturities up to three months. These are the shortest-dated U.S. Treasury securities which are particularly sensitive to the June deadline.&nbsp;
In the previous month, yields on one-month Treasury notes due after June have risen from 4% to 5.7%, indicating market worry regarding the debt limit resolution. Short-term T-bill rates will fall if the debt ceiling is lifted, raising the&nbsp;ETF&#39;s&nbsp;value.
2) IShares 1-3 Year Treasury Bond ETF (ARCA: SHY)
The IShares 1-3 Year Treasury Bond ETF is particularly sensitive to market Fed rate expectations, which are substantially reflected in two-year Treasury yield fluctuations.
Short-term Treasury rates may fluctuate whether the debt ceiling is raised or not. A compromise will keep the Fed focused on recent inflation and labor market data, <a href="https://www.benzinga.com/economics/macro-economic-events/23/05/32593305/feds-favorite-inflation-gauge-rises-more-than-expected-in-april-market-expectatio" target="_blank">which have been hotter than expected</a>, supporting market predictions for a June rate hike. ETFs will decrease if short-term rates rise, but yield-seeking investors may find an attractive entry point here&nbsp;if they think the Fed will soon end its tightening cycle.
Since a U.S. default would cause market disruptions and employment losses, the Fed would likely opt to stop raising interest rates in a no-deal situation.&nbsp;In this case,&nbsp;the value of the&nbsp;IShares 1-3 Year Treasury Bond ETF&nbsp;will rise.&nbsp;
3) IShares 20+ Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tlt#NASDAQ">TLT</a>)
The IShares 1-3 Year Treasury Bond ETF is sensitive to long-term Treasury yield changes, which are heavily influenced by growth and inflation forecasts.
A deal is likely to increase in duration-exposed&nbsp;Treasury yields, to varying degrees depending on the amount of the expenditure reductions. Lower-than-expected budget cutbacks&nbsp;will provide a stronger push&nbsp;to yields&nbsp;than a debt limit agreement indicating substantial expenditure cuts.
4)&nbsp;iShares iBoxx $ High Yield Corporate Bond ETF (ARCA: HYG)
HYG invests in high-yield corporate bonds denominated in U.S. dollars, which are by definition a risky asset that is closely tied to market sentiment.
If the debt limit resolution is seen positively by the market, high-yield corporates will profit from the wider risk-on atmosphere&nbsp;and the ETF&#39;s value is projected to rise.
A no-deal scenario or an agreement with significant budget cutbacks, on the other hand, may cause weakness in high-yield corporates, prompting investors to flee&nbsp;riskier assets and flock to&nbsp;safer alternatives.
5)&nbsp;iShares J.P. Morgan USD Emerging Market (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/emb#NASDAQ">EMB</a>)
The fund invests in developing market dollar-denominated fixed-income instruments and may experience significant volatility depending on whether or not an agreement on the debt limit is reached.&nbsp;
Given that developing market bonds are a risky asset class, they tend to be linked to U.S. high-yield corporate bonds, so EMB could experience a similar impact&nbsp;as HYG. A broader risk-off mood could spark losses in EM bonds, while this market is likely to benefit&nbsp;from an increasing risk appetite.&nbsp;
Chart: Performance of SHY, TLT, EMB and HYG Year-To-Date
<img alt="" src="https://www.benzinga.com/files/u1363475/hyg_2023-05-26_14-47-01_5fc15.png" style="height:500px; width:100%" />
<ul>
</ul>
Photo: Shutterstock

SGOV

iShares Trust Barclays 1-3 Year Treasury Bond Fund

5 Bond ETFs To Watch As Debt Ceiling Talks Enter The Final Hours To Avoid A US Default

Both the stock market and the bond market will be significantly affected by the upcoming <a href="https://www.benzinga.com/general/education/22/04/25718901/what-is-the-fomc" target="_blank">Federal Reserve&#39;s interest rate decision.&nbsp;</a>
The market is now nearly fully pricing in a 25-basis-point raise to 5%-5.25%, according to the CME Group Fedwatch tool, but what the Fed hints to do&nbsp;beyond May is what keeps investors on alert.&nbsp;
The market&#39;s attention will mostly be directed at determining if this is the Federal Reserve&#39;s last&nbsp;rate hike in the current cycle,&nbsp;or whether Fed Chair Jerome Powell will leave the door open for an additional increase in June.&nbsp; 
The second hypothesis would cause heavy&nbsp;market fluctuations, since this scenario is not&nbsp;discounted by&nbsp;investors, who expect the Fed to conclude its rate increases in May.&nbsp;
How U.S. Treasuries Could React To The Fed&#39;s Meeting
The yield on the two-year Treasury note is currently at 4%, while that on the 10-year benchmark is at 3.46% as the May FOMC meeting approaches.
If the Fed suggests that rate hikes have ended and adopts a rather gloomy perspective on the economy&nbsp;and the labor market, U.S. Treasury yields are projected to fall further, driving up the price of U.S. government bonds.
A hawkish Fed, with Chair Powell rejecting current market expectations of a pause in June and the start of rate cuts later this year, would likely be detrimental to the Treasury market, as rates would rise to reflect the Fed&#39;s higher-for-longer attitude on interest rates.
5 Bond ETFs to Keep an Eye On Ahead of the May FOMC Meeting
&bull; iShares 1-3 Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shy#NASDAQ">SHY</a>)
The iShares 1-3 Year Treasury Bond ETF&nbsp;is an exchange-traded fund managed by BlackRock, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>) that invests in U.S. Treasury securities with maturities higher than or equal to one year but less than three years.
As a result, SHY is sensitive to short-term Fed interest rate speculation, although its volatility is normally limited due to its short duration.
When an unexpected negative shock strikes the market and leads the Fed to become more dovish, it is one of the assets that tend to increase because investors regard it as a safe haven.
SHY has risen 1% thus far in 2023&nbsp;and has recorded outflows&nbsp;of $352 million over the last&nbsp;month.
&bull;&nbsp;iShares 20+ Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tlt#NASDAQ">TLT</a>)
The iShares 20+ Year Treasury Bond ETF&nbsp;is an exchange-traded fund managed by BlackRock that invests in U.S. Treasury securities with maturities higher than 20 years.
As a result of its high&nbsp;duration, TLT is very sensitive to medium-term Fed interest rate expectations and often shows heightened volatility to interest-rate shifts.
When recessionary shocks hit the economy and induce a decrease in inflation expectations, this asset appreciates significantly.
TLT has risen 4.1% year to date and has attracted inflows of $1.8&nbsp;billion over the last month.&nbsp;
Read next: <a href="https://www.benzinga.com/money/how-to-buy-treasury-bonds" target="_blank">How to Buy Treasury Bonds</a>
&bull;&nbsp;iShares iBoxx $ Investment Grade Corporate ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lqd#NYSE">LQD</a>)
The iShares iBoxx $ Investment Grade Corporate Bond ETF&nbsp;is an exchange-traded fund managed by BlackRock that invests in investment-grade corporate bonds with at least three&nbsp;years to maturity.
Investors sometimes flee to the fixed rates of safer corporate bonds during moments of risk-off in the stock markets
LQD has risen 2.7% year to date and has attracted outflows of $720 million over the last month.&nbsp;
&bull;&nbsp;iShares iBoxx $ High Yield Corporate Bond ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hyg#NYSE">HYG</a>)
The iShares iBoxx $ High Yield Corporate Bond ETF&nbsp;is an exchange-traded fund managed by BlackRock that invests in high-yield corporate bonds with maturities of at least one year and less than 15 years.
Due to its exposure to junk corporate bonds, HYG is a more volatile investment that tends to follow&nbsp;the sentiment on&nbsp;global stock markets.
Periods of abundant liquidity and limited&nbsp;corporate defaults are a&nbsp;perfect environment&nbsp;for HYG to grow, yet&nbsp;when interest rates rise and there is anxiety about widespread defaults in the corporate sector, HYG declines.
HYG is up 1.1% year to date and attracted inflows of&nbsp;$2.07 billion over the last month.
&bull;&nbsp;iShares J.P. Morgan USD Emerging Market (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/emb#NASDAQ">EMB</a>)
The iShares J.P. Morgan USD Emerging Markets Bond ETF is an exchange-traded fund managed by BlackRock International Limited and BlackRock Fund Advisors that invests in USD-denominated bonds of emerging countries across the globe&nbsp;and seeks to replicate the performance of J.P. Morgan EMBI Global Core Index.
EMB is also a highly volatile bond ETF that is also tightly correlated to HYG given its &quot;risk-on&quot; profile.&nbsp;Therefore, lower Fed interest rates and prospects of abundant liquidity in markets are what send&nbsp;EMB higher. On the other hand, higher U.S. Interest rates and rising Treasury yields represent major headwinds.
EMB has gained 0.4% year to date and has registered outflows of $215 million over the last month.
Now Read:&nbsp;<a href="https://www.benzinga.com/economics/macro-economic-events/23/05/32165610/investors-reduce-2023s-rate-cut-bets-ahead-of-fomc-analysts-now-expect-fed-on-haw">Investors Reduce 2023 Rate Cut Bets Ahead Of FOMC: Analysts Now Expect Fed On Hawkish-Hold Mode For Longer</a>
Some elements of this story were previously reported by Benzinga and it has been updated.

As Key Fed Interest Rate Decision Approaches: Here Are 5 Bond ETFs To Keep An Eye On

High-yield bonds issued by American&nbsp;and European corporations&nbsp;are considered attractive assets since they offer above-average yields&nbsp;at cheap prices, according to Oaktree Capital Management&#39;s most <a href="https://www.benzinga.com/money/how-to-buy-corporate-bonds" target="_blank">recent credit market outlook.</a>
The&nbsp;asset management firm specializing in alternative investment strategies stated that the risk of widespread corporate defaults in 2023 remains low, as&nbsp;issuer fundamentals are rather solid, and near-term maturities are modest following the wave of refinancing in 2020-21.
The high yield market &ndash;&nbsp;which is tracked by the iShares iBoxx $ High Yield Corporate Bond ETF (ARCA: HYG) &ndash;&nbsp;&quot;appears to be better positioned to weather an economic downturn than in the past,&quot; according to Oaktree.&nbsp;
Yields continue to trade&nbsp;considerably above the ten-year average, with over 55% of HY corporates&nbsp;showing&nbsp;yields above 7% at the end of Q1, compared to less than 7% at the start of 2022.&nbsp; 
The global asset manager&nbsp;also cautioned that issuer selection remained critical, since risks are not insignificant in this asset class. Low-rated corporate issuers may struggle to roll over debt now that financial conditions have tightened and &quot;reduced earnings due to inflation may have a negative impact on leverage ratios and result in credit rating downgrades,&quot; Oaktree analysts wrote in the note.
Read also:&nbsp;<a href="https://www.benzinga.com/etfs/sector-etfs/23/04/31919475/etfs-flows-tracker-investors-withdrew-over-2-billion-from-spy-qqq-this-week-other-etfs-that-saw-" target="_blank">ETFs Flows Tracker: Investors Withdrew Over $2 Billion From SPY, QQQ This Week; Other ETFs That Saw Notable Action</a>
What Yields Do High Yield Bonds&nbsp;Offer Today?
<ul>
<li>The broad U.S. high-yield bond market screens an effective yield to maturity of 8.25%, as of Friday, April 21.&nbsp;</li>
<li>BB-rated high-yield corporate bonds in the United States had an effective yield of 6.62%.</li>
</ul>
B-rated high-yield corporate bonds in the United States had an effective yield of 8.58%.
CCC-rated&nbsp;high-yield corporate bonds in the United States had an effective yield of 14.67%.
<img alt="" src="https://www.benzinga.com/files/u1363475/bamlh0a0hym2ey_2023-04-21_16-09-32_dc94e.png" style="height:500px; width:100%" />
How Have U.S.&nbsp;High Yield Bonds Performed in 2023?
<ul>
<li>So far in 2023, high-yield corporate bonds in the United States have produced a total return of 4%.</li>
<li>BB-rated high-yield bonds have delivered&nbsp;a total return of 3.7%, lagging behind.&nbsp;&nbsp;</li>
<li>B-rated high-yield bonds&nbsp;have delivered&nbsp;a total return of 4.2%.&nbsp;</li>
<li>CCC-rated high-yield bonds have outperformed the other buckets with a total return of 5.7% year to date, outperforming the other buckets.&nbsp;</li>
</ul>
<img alt="" src="https://www.benzinga.com/files/u1363475/bamlhyh0a0hym2triv_2023-04-21_16-25-05_4aaff.png" style="height:500px; width:100%" />
Now Read: <a href="https://www.benzinga.com/news/23/04/31923463/big-bucks-at-google-a-look-at-how-much-alphabet-analysts-managers-and-engineers-get-paid">Making Big Bucks At Google: A Look At How Much Alphabet Analysts, Managers And Engineers Get Paid</a>

High-Yield Corporate Bonds Are Attractive Amid Low Default Risk In 2023: Oaktree Capital

The risk appetite of investors remains depressed, not far from the extreme pessimism of 2022 and comparable to the levels of the 2009 Great Financial Crisis, according to the most recent Global Fund Manager Survey (FMS) conducted <a href="https://www.benzinga.com/news/earnings/23/04/31853910/bank-of-america-outshines-projections-q1-16-earnings-beat-fuels-share-price-rally" target="_blank">by Bank of America.</a>
BofA&#39;s overall risk sentiment barometer, which takes into account&nbsp;growth expectations, as well as equities and cash allocations, became increasingly pessimistic in April, reaching the most negative levels thus far in 2023.&nbsp;
Another sign of the defensive&nbsp;stance of global fund managers is the strong&nbsp;underweight in equities relative to bonds, which is at levels not seen since the Great Financial Crisis.
BofA Sees &quot;Pain Trades&quot; If Recession Doesn&#39;t Materialize
&quot;Bear sentiment is still&nbsp;contrarian&nbsp;supportive for&nbsp;risk assets&quot; according to Bank of America chief investment<a href="https://www.benzinga.com/topic/michael-hartnett" target="_blank"> strategist Michael Hartnett</a>. The expert predicted &quot;pain trades&quot; in rising bond yield and a rally in bank equities and REITs (where there is presently a great deal of pessimism)&nbsp;if the consensus expectation for a recession is not soon realized in the second quarter. &quot;If the recession hits in six&nbsp;months rather than six&nbsp;weeks, contrarian trades for April-May based just on FMS positioning&nbsp;include long US dollar,&nbsp;short gold, long banks-short bonds, long HY-short IG bonds, and long real estate-short tech,&quot; he said.&nbsp;
Also Read:&nbsp;<a href="https://www.benzinga.com/general/gaming/23/04/31834626/zuckerberg-splurges-meta-vr-developer-annual-salary-more-than-average-american-worker-makes-in-10-">Zuckerberg Splurges: Meta VR Developer Annual Salary More Than Average American Worker Makes In 10 Years</a>
Key Takeaways From BofA Global FMS
<ul>
<li>The BofA Global FMS polled 249 global institutional professionals in April, including 128 portfolio managers, 66 strategists/economists, 40 chief investment officers, and 15 others.</li>
<li>A net 63% of investors anticipate a worsening economy, up 13 percentage points month-on-month to the gloomiest level since December 2022.&nbsp;</li>
<li>Thirty-five percent of investors believe the Fed will begin an easing cycle in Q1 2024, 28% in Q4 2023, 14% in Q3 2023, and 10% in Q2 2024.</li>
<li>Eighty-nine percent&nbsp;of FMS investors expect above-trend inflation over the next 12 months, down from 92% in March 2023 but still much higher than anything observed since the run-up to the 2008 GFC.</li>
<li>Thirty percent of investors think that &quot;Long Big Tech Stocks,&quot; a segment of the market tracked by the Technology Select Sector SPDR Fund (ARCA: XLK), is&nbsp;the most crowded trade&nbsp;in April 2023.</li>
<li>Half of FMS investors think IG bonds, which are tracked by the iShares iBoxx $ Investment Grade Corporate Bond ETF (ARCA: LQD), will outperform HY bonds, which are tracked by the iShares iBoxx $ High Yield Corporate Bond ETF (ARCA: HYG),&nbsp;over the next year, the highest level on record.</li>
<li>A bank credit crunch and&nbsp;global recession were considered the highest tail risk&nbsp;in April, according to more than a third of investors.</li>
<li id="P04671FEE">The second most feared risk was high inflation keeping central banks hawkish, just marginally lower than the credit crunch.</li>
<li>Investors are the most bearish&nbsp;on&nbsp;real estate since July 2009.&nbsp;Half of FMS&nbsp;investors&nbsp;think that US/EU commercial real estate&nbsp;(CRE)&nbsp;is the most likely source of a credit event.</li>
</ul>
Read next: <a href="https://www.benzinga.com/news/23/04/31881783/morgan-stanleys-jim-caron-says-credit-crunch-to-unfold-slowly-over-time-not-a-sudden-shock-event" target="_blank">Morgan Stanley&#39;s Jim Caron Says Credit Crunch To Unfold Slowly Over Time: &#39;Not A Sudden Shock Event&#39;</a>

Long Ideas

Short Ideas

BofA Fund Manager Survey: Investors Underweight In Stocks Reaches 2009 Crisis Levels

Bond market volatility has been through the roof recently due to increased banking sector stress and investor&nbsp;uncertainty&nbsp;over <a href="https://www.benzinga.com/topic/interest-rates">the Fed&nbsp;rate path</a>.
The ICE BofA&nbsp;Merrill Lynch U.S. Bond Market Option Volatility Estimate (INDEXNYSEGIS: MOVE), commonly known as the &quot;VIX&quot; for bonds and a widely used measure of the implied rate&nbsp;volatility in the U.S. Treasury market, has spiked this week to levels not seen since December 2008, when the financial markets were at the height of the Great Recession after the collapse of Lehman Brothers.
<img alt="" src="https://www.benzinga.com/files/u1363475/move_2023-03-16_19-46-03_a3484.png" style="height:395px; width:760px" />MOVE Index, Chart: TradingView
The sharp increase in the MOVE index reflects the extraordinary volatility seen in the U.S. Treasuries market over the last week.&nbsp;
Daily swings in two-year Treasury yields have gotten out of hand. The yield drop of more than 50 basis points that occurred on March 13, following the failure of Silicon Valley Bank,&nbsp;was the greatest since October 1987. Nonetheless, there were days when yields climbed by more than 20 basis points, such as on March 16, putting them comfortably at the top of the range over the previous two decades.
The graph below, which depicts the two-year Treasury yield&#39;s daily fluctuations in basis points, mimics a seismograph during an earthquake.
<img alt="" src="https://www.benzinga.com/files/u1363475/koyfin_20230316_075154743.png" style="height:570px; width:760px" />U.S. two-year Treasury yields daily change (bp) &ndash; Chart: Koyfin
Markets Lean Toward 25bps Hike: Just a&nbsp;week ago, which seems so long ago considering what has happened since then, markets were leaning toward a 50-basis-point&nbsp;hike in March, as Fed Chairman Jerome Powell sounded rather hawkish in his Congressional testimony.&nbsp;
Over the weekend, the failure of Silicon Valley Bank and Signature Bank fundamentally altered the game, and rate expectations practically collapsed early this week, with some experts even predicting a Fed cut in March.
Bets on a Fed 25bp rate hike in March have risen after <a href="https://www.benzinga.com/economics/macro-economic-events/23/03/31380721/european-central-bank-hikes-rates-by-50-basis-points-says-banking-sector-resilien">the ECB&#39;s 50bp&nbsp;hike&nbsp;on Thursday</a>, and the CME FedWatch Tool now gives this scenario an 80% probability.
Yet investors are already seeing&nbsp;the end of the tunnel drawing nearer.
The terminal rate is now priced at 4.95% for May 2023, and traders expect Fed funds rates to drop to 4.2% by December 2023, implying three 25-basis-point&nbsp; rate cuts during the second half of 2023.
High Yield Corporate Bonds Screen Attractive Yields:&nbsp;On the high yield spectrum, U.S. corporate bonds continue to provide excellent yields, particularly when compared to their recent history.
According to latest data&nbsp;from the Federal Reserve Bank of St. Louis, the ICE BofA US High Yield Index Effective Yield, which tracks the median yield of U..S. dollar denominated, below investment grade-rated corporate debt publicly issued in the US domestic market, was 8.88%. This value is more than a standard deviation higher than its 10-year average.
The iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA: HYG) is mostly flat so far this year, but it is still 10% lower than it was a year ago.
Read more:&nbsp;<a href="https://www.benzinga.com/yield-investments" rel="noopener noreferrer" target="_blank">Best High Yield Investments to Earn</a>
<img alt="" src="https://www.benzinga.com/files/u1363475/koyfin_20230316_081142968.png" style="height:760px; width:760px" />Chart: Koyfin

SIVB

Bond Market Volatility Echoes Great Recession: Will Central Banks Give Up On Interest Rate Hikes?

The CBOE Volatility Index rose sharply, nearly topping the 30s level <a href="https://www.benzinga.com/news/23/03/31359536/top-4-industrials-stocks-that-may-plunge"> on Wednesday. </a>
On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2023/03/15/options-action-huge-bet-on-volatility.html">Options Action</a>,&quot; Brian Stutland of Equity Armor Investments said iShares iBoxx $ High Yield Corporate Bond ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hyg#NYSE">HYG</a>) traded at 2x average daily volume on Wednesday.
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here</a>.
There was a seller of 62,000 of the April 72-puts at an average price of $0.95 per contract, Stutland mentioned.
The trader sees a decline in volatility and projects HYG to remain above the 72 level through April expiration.
Price Action: CBOE Volatility Index jumped 10.2% to close at $26.14 on Wednesday, while HYG Corporate Bond ETF fell 0.33% to $73.33 during the session.
What is CBOE Volatility Index?
The CBOE Volatility Index, popularly known as VIX, is a measure of the equity market&#39;s expectation of volatility based on S&amp;P 500 index call and put options.
Check This Out: <a href="https://www.benzinga.com/news/23/03/31359757/insiders-selling-micron-keycorp-and-2-other-stocks"> Insiders Selling Micron, KeyCorp And 2 Other Stocks </a>
Photo via Shutterstock.&nbsp;

Options

Media

Options Traders Bet On HYG Corporate Bond ETF Remaining Above $72 Through April Expiration

아크 인베스트의 캐시 우드에 따르면 미국 국채 금리가 급등한 후 오버나이트 자금 조달 금리(SOFR) 스왑 스프레드가 확대되어 "심각한 유동성" 문제를 예고하고 있다. 전문가들은 정부와 연방준비제도의 개입만이 이 위기를 막을 수 있을 것으로 보고 있다.
무슨 일 있었나: SOFR은 하룻밤 사이에 현금을 빌리는 데 드는 비용을 반영하는 기준 금리로, 각종 금융 거래의 기준 금리로 사용된다. 반면에 SOFR 스왑 스프레드는 SOFR 기반 이자율 스왑의 고정 금리와 동일한 만기의 국채 수익률 간의 차이를 의미한다.
SOFR 스왑 스프레드의 급등은 10년 만기 국채 금리가 &#8216;해방의 날&#8217; 이틀 뒤인 4월 4일 3.87%로 최근 최저치를 기록했던 것에서 현재 4.44%까지 급등하면서 나타났다.
캐시 우드에 따르면, 마이너스 스왑 스프레드 확대는 미국 은행의 잠재적 유동성 위기를 가리키는 위험 신호를 보낸다.
우드는 이 위기를 해결하기 위해서는 &#8216;마라라고 협정'(Mar-a-Lago Accord)이라고 부르는 무역 협정을 통한 지정학적 해결책과 연방준비제도의 적극적인 개입을 통한 통화 정책적 해결책이 필요하다고 주장했다. 또한 "더 이상 낭비할 시간이 없다"고 덧붙이며 상황의 심각성을 강조했다.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
As Zerohedge notes, this swap spread is suggesting serious liquidity issues in the US banking system. This crisis is calling out for some kind of Mar-a-Lago Accord on free trade, in tandem with serious support from the Fed? No more time to waste. <a href="https://t.co/5VXYqLJemJ">https://t.co/5VXYqLJemJ</a>
&mdash; Cathie Wood (@CathieDWood) <a href="https://twitter.com/CathieDWood/status/1909816910033678801?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote>
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이에 덧붙여, 머니터리 매크로(Monetary Macro) CIO인 조셉 왕은 엑스(X) 게시물에서 "백악관이 10년물 국채 수익률 하락을 원한다면 은행 규제 개혁에 속도를 내야 한다"고 말했다.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Big tightening in SOFR swap spreads. If the White House wants lower 10 year yields they need to speed up banking regulation reforms. <a href="https://t.co/19PlN9cI4a">pic.twitter.com/19PlN9cI4a</a>
&mdash; Joseph Wang (@FedGuy12) <a href="https://twitter.com/FedGuy12/status/1909686590668259624?ref_src=twsrc%5Etfw">April 8, 2025</a></blockquote>
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왜 중요한가: 수익률 급등은 시장 조정이 지속되는 가운데 채권 가격이 하락하고 있음을 시사한다. 간단히 말해, 주식 시장이 폭락할 때 전통적으로 채권 투자를 선호하던 투자자들이 포지션을 청산하고 있다는 뜻이다. 하지만 여기에는 더 많은 이유가 있다.
도널드 트럼프 대통령이 중국의 보복 조치로 104%의 관세를 부과한 후 야데니 리서치의 에드 야데니는 "채권 투자자들은 중국과 다른 외국인들이 미국 국채를 팔기 시작할까봐 걱정하기 시작했을 수 있다"고 했다.
또한 하이일드 회사채와 10년 만기 국채의 수익률 스프레드가 빠르게 확대되면서 신용 시장도 스트레스 징후를 보이기 시작했다.
야데니가 공유한 데이터에 따르면 4월 7일 기준 하이일드 회사채 스프레드는 407bp에 달해 투자자 신뢰도 하락, 경기 둔화, 경기침체 우려를 나타내고 있다.
이에 따라 하이일드 회사채와 선순위 은행 대출에 투자하는 ETF가 급락하기 시작했다.
iShares iBoxx $ 고수익 기업 채권 ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>)와 인베스코 선순위 대출 ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKLN#NYSE">BKLN</a>)는 지난 5일 동안 각각 3.64%와 2.75% 하락했다.
야데니는 "좋은 소식은 이런 일이 발생하면 연준 풋이 빠르게 회복할 것이라는 점&#8221;이라고 했다.
또한 경제학자인 피터 쉬프는 국채 수익률 상승에 대한 우려를 강조하며 "내일 아침 긴급 금리인하와 대규모 양적완화 프로그램 발표가 없다면 내일은 1987년 스타일의 주식시장 폭락이 될 수 있다"고 말했다.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
As I warned earlier, the Treasury market is crashing. The yield on the 10-year just hit 4.5%, and the yield on the 30-year just hit 5%. Without an emergency rate cut tomorrow morning and the announcement of a massive QE program, tomorrow could be a 1987-style stock market crash.
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1909822222534955101?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote>
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가격 움직임: 화요일 종가 기준 나스닥 100 지수는 전고점인 22,222.61포인트에서 23.10% 하락한 약세장 영역에 있다. S&amp;P 500 지수는 2월 19일의 최고치인 6,147.43포인트에서 18.95% 하락했다. 반면 다우존스는 52주 최고치인 45,073.63포인트보다 16.48% 하락했다.
2년 만기 국채 수익률은 3.77%, 30년 만기 장기 채권 수익률은 4.92%를 기록했다. S&amp;P 500 지수와 나스닥 100 지수를 각각 추종하는 SPDR S&amp;P 500 ETF 신탁(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)과 인베스코 QQQ 신탁 ETF(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)는 화요일에 하락했다.
벤징가 프로 데이터에 따르면 SPY는 1.57% 하락한 496.48달러를 기록했고, QQQ는 1.80% 상승한 416.06달러를 기록했다.
수요일(9일)에는 다우 선물이 2.32%, S&amp;P 500 선물이 2.58%, 나스닥 100 선물이 2.63% 하락했다.
사진 출처: Shutterstock
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캐시 우드, 오버나이트 차입 금리 스프레드 확대 "심각한 유동성 문제" 경고

미국 금리가 20여년 만에 최고 수준을 계속 유지함에 따라 투자자들은 높은 수익과 <a href="https://www.benzinga.com/money/high-yield-bonds" target="_blank" rel="noopener">주식으로 부터의 다각화</a>를 모두 추구하는 고수익 회사채 영역으로 점점 더 관심을 끌고 있다.
iShares iBoxx $ High Yield Corporate Bond ETF (<a class="items-end ticker-link-wrapper inline-flex" href="https://www.benzinga.com/quote/hyg" target="_blank" rel="dofollow noopener" aria-label="Go to Quote Page for HYG">HYG</a>)가 추적한 미국 고수익 회사채 시장은 최근 긍정적인 성과를 보여 2023년 10월보다 10%나 급등했다.
채권에 대한 관점에서 살펴보면, 이자율과 가격은 반대 방향으로 움직이며, 이는 이자율이 상승함에 따라 가격이 하락하고 그 반대도 성립한다는 뜻이다.
2024년 연방준비제도(연준)가 이자율 인하의 가능성을 눈여겨보는 많은 트레이더들에게, 이것은 회사채 시장의 새로운 장기 상승 추세가 시작된 것으로 생각될 수 있다. 
읽기: <a href="https://www.benzinga.com/yield-investments">30만명이 알고 있는 2024년 최고의 고수익 투자</a>
고수익 채권의 영역을 탐색하려면 주의가 필요하다.
정크본드라고도 불리는 하이일드 채권은 안전한 투자 등급 채권보다 신용 등급이 낮은 기업이 발행한 회사채이다. 이 채권은 스탠더드 앤드 푸어스(Standard &amp; Poor&#8217;s), 무디스(Moody&#8217;s) 또는 피치(Fitch)와 같은 기관으로부터 BBB 미만의 투기 등급을 받는다.
막대한 이익의 매력 뒤에는 높아진 리스크라는 현실이 숨어 있다. 투자의 황금룰은 여기서 크게 울려 퍼진다 &#8211; 기업이 의무를 이행하지 않을 위험이 높을수록 투자자에게 잠재적인 보상도 높아진다.
회사의 암울한 이익 전망 때문에 주식 투자를 경계하는 사람들에게 채권으로의 전환은 회사의 만기까지 생존 가능성을 고려한 대안 전략을 제시한다.
투자자들은 이러한 고수익 채권의 잠재적인 보상을 활용하려고 할 때 모든 눈부신 기회에는 그에 따른 위험이 따른다는 점을 인식하고 경계심을 유지해야 한다.
<h3 class="wp-block-heading">2024년 4월 기준, 만기 수익률이 가장 높은 미국 회사채 상위 10개</h3>
다음은 2024년 4월 초 기준으로 퍼블릭닷컴(Public.com)의 채권 스크리너에 따른 미국의 최고 수익을 창출하는 회사채 10개이다:
<ol>
<li>AMC 6.125% 05/15/2027
<ul>
<li>발행처: AMC 엔터데인먼트 홀딩스 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>)</li>
<li>수익률: 34.19%</li>
<li>쿠폰: 6.125%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 48.62달러</li>
<li>만기: 2027년 05월 15일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>SATSX 6.625% 08/01/2026
<ul>
<li>발행처: 휴즈 새틀라이트 시스템즈(Hughes Satellite Systems Corp.), 에코스타 코퍼레이션(Echostar Corp.)의 100% 자회사 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SATS#NASDAQ">SATS</a>)</li>
<li>수익률: 33.81%</li>
<li>쿠폰: 6.625%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 58.47달러</li>
<li>만기: 2026년 08월 01일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>DISH 7.375% 07/01/2028
<ul>
<li>발행처: 디시 네트워크(Dish Network Corporation)</li>
<li>수익률: 30.74%</li>
<li>쿠폰: 7.375%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 46.55달러</li>
<li>만기: 2028년 07월 01일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>LUMN 6.875% 01/15/2028 
<ul>
<li>발행처: 루멘 테크놀러지스(Lumen Technologies Inc.) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUMN#NYSE">LUMN</a>)</li>
<li>수익률: 30.71%</li>
<li>쿠폰: 6.875%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 48.70달러</li>
<li>만기: 2028년 01월 15일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>OPI 2.4% 02/01/2027
<ul>
<li>발행처: 오피스 프로퍼티 인컴 트러스트(Office Properties Income Trust) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OPI#NYSE">OPI</a>)</li>
<li>수익률: 30.45%</li>
<li>쿠폰: 2.4%</li>
<li>가격: 49.26달러</li>
<li>만기: 2027년 02월 01일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>OPI 2.65% 06/15/2026
<ul>
<li>발행처: 오피스 프로퍼티 인컴 트러스트(Office Properties Income Trust)</li>
<li>수익률: 29.82%</li>
<li>쿠폰: 2.65%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 58.38달러</li>
<li>만기: 2026년 06월 15일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>OPI 4.5% 02/01/2025
<ul>
<li>발행처: 오피스 프로퍼티 인컴 트러스트(Office Properties Income Trust)</li>
<li>수익률: 28.37%</li>
<li>쿠폰: 4.5%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 83.48달러</li>
<li>만기: 2025년 02월 01일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>AMC 5.875% 11/15/2026
<ul>
<li>발행처: AMC 엔터데인먼트 홀딩스</li>
<li>수익률: 28.31%</li>
<li>쿠폰: 5.875%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 60.42달러</li>
<li>만기: 2026년 11월 15일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>DISH 5.125% 06/01/2029
<ul>
<li>발행처: 디시 네트워크(Dish Network Corporation)</li>
<li>수익률: 27.46%</li>
<li>쿠폰: 5.125%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 40.22달러</li>
<li>만기: 2029년 06월 01일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
<li>AMC 5.75% 06/15/2025
<ul>
<li>발행처: AMC 엔터데인먼트 홀딩스</li>
<li>수익률: 25.06%</li>
<li>쿠폰: 5.75%</li>
<li>쿠폰 주기: 반기</li>
<li>가격: 81.03달러</li>
<li>만기: 2025년 06월 15일</li>
<li>등급: 투기 등급</li>
</ul>
</li>
</ol>
지금 기사 읽기: <a href="https://www.benzinga.com/money/best-high-yield-etfs-right-now">제일 먼저 알아보자: 2024년 최고의 고수익 ETF</a>
사진 제공: 셔터스톡

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iShares iBoxx $ High Yield Corporate Bond ETF

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에 대한 최신 뉴스 iShares iBoxx $ High Yield Corporate Bond ETF (ARCA:HYG)

수요일, 4월 09, 2025

목요일, 4월 04, 2024

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