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Post by Chahta on Feb 12, 2021 13:49:42 GMT
Not sure what this means for investors other than lower yields to come. Is the spread going lower too? Then there is this which was over a year ago. Are investors not getting paid for risk? |
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Post by yogibearbull on Feb 12, 2021 14:05:51 GMT
HY spreads [vs Treasuries] getting so low mean that investors are not getting paid enough to take HY risks. See FRED charts for various spread levels - HY index spread is almost same as that for B. fred.stlouisfed.org/graph/?g=B1UA |
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Post by Chahta on Feb 12, 2021 15:11:24 GMT
It looks as though spreads are getting to all-time lows now. Is this bearish for HY funds? What other types of funds does this affect? High-yielding MS funds that own junk corp. bonds too?
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Post by yogibearbull on Feb 12, 2021 15:24:12 GMT
I don't have any dedicated HY exposure. I am ok with mostly core-plus & some multisector funds. But I don't check them for daily or monthly data.
Some core-plus can have up to 35% noninvestment grade. That is plenty & I would let fund manager handle the mix.
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