Assets Swing To And From Junk Bond ETFs
Zacks Investment Research | May 12, 2015 12:26AM ET
The path of junk bond ETFs has been quite rough for the last couple of months. The space gave a dull show in 2014. The acute plunge in oil prices in the second half of the last year weighed heavily on the space, especially on the energy bonds.
Thanks to the shale-oil boom in the U.S., energy companies spread their presence heavily to the high-yield bond market. Thus, fears of their default amid the oil price rout triggered junk bond sell-offs. The rising rate worries in the U.S. also hurt the space badly.
When oil prices finally saw the face of recovery in early 2015, junk (high yield) bonds seemed to catching investors’ eye. But the return of rising rate concerns again wrecked havoc on the space.
Junk Bonds Space: A Star Earlier
Investors should note that over the last one-month period (as of May 6, 2015), WTI crude recovered over 10% while Brent crude advanced about 13%. Investors heaved a sigh of relief as the oil-induced sell-offs in the junk bond space seemed over (read:
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