SPDR Barclays Capital High Yield Bond (ETF)

  • Why Junk Is Underperforming: It's Not Interest Rates

    By Jordan Wathen - June 3, 2013 | Tickers: HYG, MORT, JNK

    Of all asset classes, bonds are the most sensitive to interest rates. Investors know the term convexity, which describes how a bond trades relative to par value given rising or falling rates.

    As investors brace for the Fed's end to quantitative easing, rates are up across the board. The 10-year Treasury yields 2.16%, up from less than 1.7% at the beginning of May. Meanwhile, higher rates are more »

  • Where Retirees Can Find High Yields

    By Jordan Wathen - May 20, 2013 | Tickers: BKLN, O, O-E, JNK

    As American demographics change, so does the nation's asset allocation. Over the past few years, the market has supplied a number of high-dividend ETFs to give investors current income. As a result of a low rate environment, stock prices are high and yields are depressed.

    There's still plenty of room to find yield, however.

    REITs for long-term dividends

    Real estate investment trusts have taken in billions of dollars more »

  • Why It's Time to Drop Junk Debt

    By Jordan Wathen - May 17, 2013 | Tickers: HYG, JNK

    Junk debt sits atop a multi-year run as investors bid down yields and drive up bond prices. Undoubtedly the result of the Fed's non-stop quantitative easing, junk bonds trade at an average that implies a premium to par and a yield less than 5%.

    Never have junk-rated companies found it so easy to raise capital. Investors yearn for some semblance for yield, as corporate debt yields dive in a more »

  • What's Happening With High Yield?

    By Nathaniel Matherson - May 16, 2013 | Tickers: HYG, PHB, JNK

    Are you one of the many investors in search of yield in this low rate environment?

    In this article, I would like to give an update on the high-yield bond market as well as introduce a few exchange traded funds which can provide easy exposure. A high-yield bond, or junk bond, is any bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Due to more »

  • 2 Ways to Play Changing Fed Policy

    By Jordan Wathen - April 18, 2013 | Tickers: AGNC, HYG, JNK

    The Federal Reserve is currently buying some $85 billion in Treasuries and mortgage-backed securities each month in a bid to slash long-term interest rates. That program may soon come to an end.

    Earlier this month, San Francisco Federal Reserve Bank President John Williams commented on the buying spree, noting that bond buying could be cut, and eventually halted by the end of 2013.

    In a Town Hall meeting, he delivered more »

  • 2 Ways to Play Changing Fed Policy

    By Jordan Wathen - April 6, 2013 | Tickers: AGNC, HYG, JNK

    The Federal Reserve is currently buying some $85 billion in Treasuries and mortgage-backed securities each month in a bid to slash long term interest rates. That program may soon come to an end.

    On Wednesday, San Francisco Federal Reserve Bank President John Williams commented on the buying spree, noting that bond buying could be cut, and eventually halted by the end of 2013.

    In a Town Hall meeting, he delivered more »

  • 2 Ways to Play Changing Fed Policy

    By Jordan Wathen - April 6, 2013 | Tickers: AGNC, HYG, JNK

    The Federal Reserve is currently buying some $85 billion in Treasuries and mortgage-backed securities each month in a bid to slash long term interest rates. That program may soon come to an end.

    Earlier this month, San Francisco Federal Reserve Bank President John Williams commented on the buying spree, noting that bond buying could be cut, and eventually halted by the end of 2013.

    In a Town Hall meeting, he more »

  • 2 Ways to Play Changing Fed Policy

    By Jordan Wathen - April 3, 2013 | Tickers: AGNC, HYG, JNK

    The Federal Reserve is currently buying some $85 billion in Treasuries and mortgage-backed securities each month in a bid to slash long term interest rates. That program may soon come to an end.

    On Wednesday, San Francisco Federal Reserve Bank President John Williams commented on the buying spree, noting that bond buying could be cut, and eventually halted by the end of 2013.

    In a Town Hall meeting, he delivered more »

  • Apple, and Why Buffett Really Bought Heinz

    By Chris Marasco - March 19, 2013 | Tickers: AAPL, BRK-B, HNZ, JNK

    No doubt you’ve heard of Hedge Fund Titan David Einhorn. He has been plastered all over the news lately. Einhorn was pestering Apple (NASDAQ: AAPL) to pay out cash to shareholders. The interesting part is that Einhorn wasn’t pushing for a simple dividend increase on common stock.

    Instead, Einhorn wanted Apple to create a special preferred equity instrument whose payouts were tied to Apple’s secure stream of more »

  • Dangers of High Yield Hunting

    By Victor Lai - March 12, 2013 | Tickers: HYG, HYD, JNK

    Fixed income investors that were accustomed to earning 5% on a portfolio of government bonds are now getting 2% for the same securities.  The steep drop has interest starved investors hunting for yield. As usual, the easiest way to increase yield has been to increase risk, and investors have taken the path of least resistance.

    Nowhere is this more prevalent than in the high yield bond market. According to Morningstar more »

  • Why Floating Rates Are All the Rage with Investors

    By Jordan Wathen - March 1, 2013 | Tickers: FLOT, HYG, BKLN, JNK, FLRN

    Bank loans are all the rage as investors look for higher yields and more certain returns. Investors have flocked to new loan funds as a way to get more fixed-income exposure at a higher yield.

    Two of the biggest plays are floating rate notes and basic, senior loans.

    Here's why investors love these funds:

    • Little rate risk – Floating rate notes and bank debt offer investors the opportunity to ignore more »
  • Apple Fiasco Proves That Fixed-Income Could Blow Up

    By Chris Marasco - February 13, 2013 | Tickers: AMLP, AAPL, JNK | Editor's Choice

    If Wall Street Journal columnist Rolfe Winkler is right, then investors seeking “safety” could be on the verge of losing billions of dollars.

    “Mr. Einhorn’s move might be the clearest signal yet that the bull market in fixed-income and high-yielding securities is well into bubble territory,” writes Winkler.

    To me, the fixed-income marketplace appears to be overheating.  There certainly could be more upside, but I see four distinct areas more »

  • High-Yield Debt Continues its Move Higher

    By Daniel James - January 22, 2013 | Tickers: HYG, LQD, JNK

    In an ultra-low interest rate universe, yield-hungry fixed-income investors have been left with precious few places to put their money to work. With record low interest rates, investors are sitting on huge piles of cash that in many cases is being funneled into high-yield funds, evidenced by the huge inflows these funds have experienced over the last year. While some analysts warn that the bull-run on high-yield debt may be more »

  • Alternatives To Fixed Income

    By Federico Zaldua - January 14, 2013 | Tickers: SAN, BP, HYG, JNK

    As a Fixed Income value investor it’s not easy to find really good investments at reasonable prices anymore. You can find specific opportunities in Europe or in countries such as Argentina or Venezuela, but the truth is that life is not so easy when US high quality credits are close to the zero bound - US 10 year Government bonds offer a 1.9% yield. The US bond market became more »

  • Apollo Investment on Sale, But…

    By Justin Carley - February 8, 2012 | Tickers: AINV, HYG, PNNT, JNK

    Apollo Investment Corp (NASDAQ: AINV) has been a preferred stock recommendation for me since I recommended it here in mid-December.  What was a tremendous pick a day ago is facing some stiff pressure today.  The company reported 4Q earnings that missed estimates, lowered the dividend, and replaced their CIO/COO.  The stock, well it is down 11% as of this writing.  Even factoring that in, the stock has returned 11 more »