Along with the stock market the high yield bond market has had a strong rally since the turn of the year. The secondary market and ETFs had strong performance as did the market for new issues
as the wsj reported:
A long freeze in the junk bond market thawed Thursday as midstream energy company Targa Resources Partners LP became the first business to sell below-investment-grade bonds since November.
Targa, which has credit ratings at the upper end of the speculative-grade spectrum, sold $1.5 billion of eight and 10-year bonds, twice the amount initially expected. In another sign of a strengthening corporate debt market, investment-grade Anheuser-Busch InBev SAalso sold $15.5 billion of bonds Thursday, the largest since October, as the beer giant moved to repay existing debt.
The high yield spread over Treasuries has dropped sharply from 5.35 on Jan 2 to 4.83 jan 8
And after experiencing a terrible 2018, underperforming the aggregate bond market (AGG) in 2018...
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| High Yiekd ETFa 2018 JNK 2018 returns JNK (intermediate term high yield) -3.3% SJNK (short term high yield in blue) -.3% HYLD(short term high yield in gold)+.2% AGG (aggregate bond market in blue)+ .1% |
...2019 has started out strongly for high yield bond ETFs
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| HIgh Yield Bonds YTD as of Jan 8 JNK +3.5% SJNK+2.3% HYLD+2.0% AGG 0 |
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