High Yield Corporate Bonds: Degrading Momentum
Tim Knight | Jul 13, 2014 12:09AM ET
The world of high-yield corporate bonds has been obediently charging higher for years, right along with equities. However, if you scrutinize what’s been happening recently, you’ll realize that momentum is definitely waning. Look at the three trendlines I’ve drawn below; they’ve all been violated (the red one extending back to the early 2009 bottom). If nothing else, it seems the glory days for gains in the world of stuff like Ishares H/Y Corporate Bond (ARCA:HYG) and SPDR Barclays High Yield Bond (ARCA:JNK) are behind us for a while.
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