Friday, March 9, 2018

Markets: I'm Short Junk Bonds

I'm short junk bonds. The yield spread between junk bonds and AAA bonds now is very, very narrow (never been this narrow) and when interest rates go higher and they have already started going higher, junk bonds are going to get killed.

Related trading instruments: 

  • SPDR Barclays Capital High Yield Bond ETF (JNK) 
  • iShares iBoxx $ High Yid Corp Bond (ETF) (HYG) 

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