US Junk Bond Yields Drop Below 4% for the First Time EVER

Another day, another record milestone comes and goes with little notice. While many investors are distracted by things like BITCOIN, chasing someone elses short-term adventures, I thought it worthwhile to commemorate the day in risk-taking from a bond market lense. To do so, I’ll turn TO a Bloomberg.com story and CHART:

U.S. Junk-Bond Yields Drop Below 4% for First Time Ever: Chart

Bloomberg Barclays HY Index Yield to Worst

( click HERE or ON visual to enlarge )

Average U.S. junk-bond yields fell below 4% for the first time ever Monday as investors seeking a haven from ultra-low interest rates keep piling into the asset class. The measure for the Bloomberg Barclays U.S. Corporate High Yield index dipped to 3.96% after six straight sessions of declines. The lower yields should encourage more speculative-grade companies to tap the market after raising more than $7 billion last week. January was a record month for sales with $52 billion priced, and year-to-date volume stands at about $60 billion.

Before deploying YOUR assets in risky strategies chasing someone ELSES risk adjusted returns (in high yield fixed income or BITCOIN), consult your Etico Partners financial expert to help secure your own financial future…

Steven J. Feiss

Managing Director, Fixed Income

Etico Partners, LLC

1795 Rout 9 Clifton Park, NY 12065

Office: (732) 683-9222
Mobile: (914) 450-9668

feiss@bloomberg.net
sfeiss@eticony.com

Meet the Author

Financial markets veteran with more than three decades of experience working with high profile, domestic and international asset managers and trading desks, producing customized and actionable solutions for strategic alpha generation and risk mitigation. Author of a unique daily (6x per week) cross-asset macro market commentary (the BondBeat) to inform and assist INSTITUTIONAL FIXED INCOME investors and trading desks.