JNK
SPDR® Bloomberg High Yield Bond ETF
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Increasing order of risk. IEI < HYG < JNK < TLT 😂
Any thoughts on floating rate loan ETFs? They have a high yield right now.
TLT, HYG, JNK, & LQD: Bond Market Sell Off & Fed Reaction/ Discussion
Is Credit Risk Rising on Wall Street, America ? Lets take a deep look at the Bond Market using TA...
Outrages predictions 2022 US inflation reaches above 15% on wage-price spiral
Outrages predictions 2022 US inflation reaches above 15% on wage-price spiral
Mentions
Watch the HYG or JNK (junk bond etfs) If they keep going up everything is probably fine. Any hint of instability there then watch them really carefully, keep both eyes on them.
SPY up TLT up DXY up JNK up Perfectly normal!
I use JNK as my risk on / off sentiment gauge for the market and usually play SPX options or CSP some tickers with higher IV for income generation
Credit spreads are elevated, but nowhere near the levels seen in Covid, GFC or even Tariff 2025 in April this year. It is worth watching for sure - the best analog to gauge risk sentiment is the ticker JNK.
BlackRock faceplanted in shadow banking: $500m “receivables” were merely vibes. For BLK it’s a parking ticket; for private credit, it’s cockroach season. Don’t YOLO BLK puts; if the roaches multiply, smack HYG/JNK/BKLN or grab VIX. Shadow banking = payday loans in tuxedos. Free yield ain’t free.
Going to post this here one more time. Bols be careful buying this dip for the next ~5% to the downside. Risks are building quietly beneath the surface of the market euphoria. Between AI circle jerk and meme stock frenzies, theres cracks forming in the plumbing of the markets. St louis fed financial stres index is creeping higher, overnight reverse repo market is down to just 5 billion, the TGA is still climbing, Credit spreads are widening and my real time indicator using the spread of HYG+JNK/TLT is plummeting in a similar fashion leading into the April selloff. All of this is indicative of liquidity drying up, and possible plumbing issues with the foundation of the financial system. VIX has been slowly creeping higher along with equities likely a result of hedging flows. There is a real good chance the rug is about to be pulled on retail.
Risks are building quietly between the surface of the market euphoria. Between AI circle jerk and meme stock frenzies, theres cracks forming in the plumbing of the markets. St louis fed financial stres index is creeping higher, overnight reverse repo market is down to just 5 billion, the TGA is still climbing, Credit spreads are widening and my real time indicator using the spread of HYG+JNK/TLT is plummeting in a similar fashion leading into the April selloff. All of this is indicative of liquidity drying up, and possible plumbing issues with the foundation of the financial system. VIX has been slowly creeping higher along with equities likely a result of hedging flows. There is a real good chance the rug is about to be pulled on retail.
any idea what is happening to high yield bonds? are they de-risking or credit stress or what? looking at HYG and JNK
Its the rate differential between corporate bonds and us treasuries of equal maturity. Higher spreads = higher perceived risk on corporate bonds. Its on tradeview or you watch here https://fred.stlouisfed.org/series/BAMLH0A0HYM2EY Ive also created a real time credit spread monitor on tradeview using this formula : HYG+JNK/TLT
If bols were super confident, you should go all in on Junk Bonds/ $JNK.
HYG+JNK/TLT is a great indicator for risk appetite and making swing trades on the index.
> Also why hasn't JNK crashed as hard as TLT Why would it? They are wildly different both in credit and interest rate sensitivity. JNK has an effective duration of 3, TLT is 15+.
Just 1 on my gambling account on RH 80% JMIA w/leaps and the other 20% is alt coins. My IRA is just boomer stuff like etfs, spy, QQQ, bitx, JNK, tesla, nvda, apple, msft
Already down another $8 pre market, I hold just under 5 spy shares and gonna sell when market opens amd just dump it into JNK until all this tariff shit cools off
Would JNK now go to shit since yields are over 5%? Surprised its not moving yet.
I have the same question as you. But I've been investing in IRAs for 40 years and I still don't have the answer. Supposedly bonds pay a fixed rate of around 2-5% depending on the risk you are willing to take, with US treasuries and investment grade corporate bonds like LQD pay 2%, and other high yield bonds pay 4-75 like JNK. But why not put that money into a CD ladder that expires in 1,3,5,10, 15 years? A financial planner told me to not get into any inflation protected fund for some reason I can't even remember. PM me and let's help each other.
They should put treasuries in the high yield junk bond etfs JNK and HYG
Junk bonds and High Yield Corporate bonds just hit all time highs last week. Market is going back to all time highs Just overlay JNK/HYG with SPY and QQQ.
It has to adjust for par on all outstanding bonds so while it’s on paper down, it’s not necessarily the worst, or a JNK bond with a different ticker. Just what we have to do to make all bonds with similar duration trade as apples instead of apples and guava. Sequence of returns risk becomes a larger factor I guess but I’d hope if your coming up on retirement, one would have more cash on hand to weather the wave of price changes we’re having in TLT
Someone convince me why JNK q3 puts are not the trade of a lifetime
No I’m a degenerate - I’m gambling for enough money to retire; deep OTM spread between June 20, September, January Also some JNK, LQD 12000 options worth across everything
DCA into the S&P500 is a time honored approach. We all did it in the 90s. It’s not bad. After dotcom and 2008 recession, we started to think a more nimble approach was called for, avoiding the dangers of emotional or impulsive trading. We found good ideas around. Check out Carter 12% Solution. His book describes the rationale and his back testing. Essentially one rebalances once a month using set parameters in ETFs. No subscription either, just a book and a free email monthly notice. The goal over time is 12%/yr. Just rebalance once month and go live life. FYI, the current advice is JNK/SHY. I think he does other more aggressive strategies too.
Junk bonds and/or preferred stocks. Not as scary as it sounds. the etf JNK is paying close to 7%. Or you can buy individual junk bonds/preferred stocks and spread it out. Some ideas for preferred stocks that pay close to 7% would be Bac.L or MSPRF. Bank of America and Morgan Stanley so I think they should be pretty safe. They are considered lower safety than a normal BOA or MS bond though.
LQD and JNK bonds going up during this downturn tells me one thing. Investors want guaranteed returns and Venture Capital like investments. The market is over leveraged on Mag 7 and AI. Investors want something new like Quantum computing or new AI markets.
JNK used as a proxy for credit spreads is showing that all volatility is a buy at the moment
Can check out JNK and HYG
Look up tickers like ARCC (own it and love it), JEPI, JNK - i think they all yeild over the margin rate I'd dump it all in ARCC but they pay quarterly and interest payments are monthly. Thinking about JEPI but that's more market exposure and depends on how good SPY is doing
With High Yield Bonds you really can't lock in a rate most of the time, since the bonds usually can be called back. Also only ten bonds is lame, something like JNK or USHY (I own that one) is probably a better and cheaper product.
I will only ever let my daughter consider only fans if she pulls in min 1mil per year after taxes and dumps 90% of it in VOO / VTI / JNK / TLT etc
SHY rallied, JNK rallied, even AGG is up a bit IEF, TLT tho? Fucking flat 
History has shown rate cuts after hitting the terminal rate for am extended period of time is usually a sign that the ged has recognized significant economic slowing due to the rate cuts, which means the economy and stocks are on borrowed time. But, I'm seeing enough for now to remain bullish, but for sure is time to be on your toes as we could absolutely be much closer to the top of the market than the next bottom. We are starting a new trend of higher lows and higher highs in volatility, which is usually a big warning sign that the top is nigh. But the one thing I also like to use as a leading indicator is high yield corporate bonds $HYG (or $JNK--but HYG has more volume). HYG is hiatorically really good at setting series of lower highs before stocks top out for a period of time. It's not doing that yet. Unusual that VIX is showing a sort of warning but HYG is not. I'm going to ride with the BTFD crowd for the time being, though... until HYG or something else shows me things really are taking a turn for the worse in the economy and stocks. Initial jobless claims are still within the low range. I expect a spike next week due to hurricane Helene, possible that rattles the market for a little bit, but as that normalizes some again, it will be party on into the end of the year. We'll see what we have at that point. I'm expecting closer to $6,055 SPX EOY. We'll see if that proves to be the top or not, see what the trend in jobs data looks like at that time, as well as if HYG has then started to show bearish divergences.
high yeild is going to normally have lower credit quality bonds so that is why you are getting higher yields. Something like HYG , has only BB and below. JNK is roughly the same. SGOV/USFR/TFLO are all Treasury notes/bills I would feel much more comfortable with them if memory is correct they are all AA and above, they are all state tax exempt. Also what are these bonds supposed to be used for e-fund, cash holdings, goal for something else , etc?
The ultimate boomer shit is having a "financial advisor" build your port for you Just buy VOO, JNK, and some other etfs and save the fee boomer
I mean there is a whole lot of middle ground between something that is like 100% safe and something that could lose 55% of its value next week. Some ideas are corporate bonds / junk bonds (riskier) The shorter the duration the safer it is , the longer the more risk it is So something like SCHJ (short term corp bond 1-5 years) is pretty fairly safe Something like SCHI (Med term corp bond 5-10) years is a bit more risky or you could take more credit risk SJNK is short term 1-5 year junk bonds JNK is mid term junk bonds Just some ideas but note all these have risk unlike a money market fund
I think i'm dumping my remaining buying power someplace to keep it safe from me this month thinking bond ETF - JNK, TLT or something. Any of you regards got any ideas
This subreddit doesn't allow pics in the replies, so I'll have to just use text. Try out [portfoliovisualizer.com](http://portfoliovisualizer.com) and check their Tools pulldown for Asset Correlations. Your BEMB owns dollar-denominated debt only, so that makes a difference. BEMB happens to be a bit more highly correlated with SPY and EFA than domestic JNK is. I happen to have a 5% stake in EM bonds but they're not dollar-denominated. EMLC is a local currency EM bond fund that is less correlated to US and foreign stocks than either JNK or BEMB.
If all you care about is dividend yield, why not go after an ETF like JNK or JEPI?
Well there is a pretty big gap between SGOV and VTI/VOO in terms of risk here but generally I would say something like BND or LQD or JNK BND being the safest then LQD being safer and JNK being more risky but still less risky then VOO/VTI
So just to get some wording strait because your wording is confusing saying bonds are safer than ETFs or MF ETF or Mutual funds are funds that hold other things, they are as safe or risky as their holdings They can hold very safe things like short term treasuries (SGOV) , or they can hold risky things like small cap foreign stock (SCHC) So you cannot really say ETFs are more risky than bonds , SGOV an ETF will be safer then some long duration junk bond. That said with bonds there are sort of two axis points duration (generally length to maturity ) and credit risk The shorter the duration and lower the credit risk the safer the bond, the longer the duration or the higher credit risk the riskier the bond Meaning on one end we have short term treasuries , low duration , low credit risk On the other end you have long dated , higher credit risk junk rated bonds Now there is also everything "in between", you can buy a 30 year government bond, low credit risk but long duration or even a short term junk bond. So something in between might be LQD what invest in mid term corporate bonds (investment grade) ; then there is also JNK what invest in mid term junk bonds that is higher risk. Generally, both will still be "safer" then stocks However as u/wild_b_cat said an easy answer is just allocate a bit to both using broad market index funds For example, 60% VTI (Total USA stock ) / 40% BND (Total USA bond ) and adjust the allocation as you see fit. The higher the bonds allocation, the "safer" the portfolio
JNK for junk bonds. Best performing.
You have products like JNK and other high-yield bond ETFs that give you better yield than treasuries, but not without added risk. It's about 10 percent annually right now.
Could have bought bought JNK and got 45k in yield per year. No sympathy for fools though.
JNK not buying the recession rumors. bullish.
Flight to REITs, JNK, JEPI, dividend funds is happening.
If it was me and I wanted to go a little wild, I'd go with JNK.
Great explainer describing bonds in detail: https://youtu.be/kPTdUZpBlj8 Bond ETFs are just a bunch of bonds bundled together. Basically, if you want to make money from bonds, you will need to expose yourself to: - Duration risk - Credit risk Credit risk is the risk that the borrower defaults. Duration risk is how long it takes to get your money back. An ETF that exposes you to credit risk would be something like ANGL or JNK. For duration, you can look at a fund like TLT, which invests in 20-year or longer Treasury Bonds. Or, you can invest in the total bond market, such as BND (Vanguard Total Bond Market ETF). Something like BND is generally viewed as quite safe, but also boring. You're exposed to a lot of reinvestment risk with something like a CD — if interests fall while you're holding the CD, then it could be difficult to find another high-yielding investment.
I've got some longer dated labu and inda calls. I'm looking into GE and will probably get long dated calls. Winding down my BITX position. AVGO is tempting me for earnings. I'll be looking for biotech index dips, as well as announcements. NKTR is one on the docket. Shopped at Costco and target today and costco was packed and target was empty. Might be a sign we'll see what they cost. I'll hold overnight calls on qqq into jobs report. Going to build an IWMY position with some of these earnings, get TLT, and JNK.
>when it comes to investing in ETFs, like JNK, it's unclear when I will be able to sell them with a profit, Recommend avoid speculating on "junk" grade credit. Especially if you're new to this & not sure how bond funds are priced.
> However, when it comes to investing in ETFs, like JNK, it's unclear when I will be able to sell them with a profit, because of ETF volatility I'm not sure I understand. If the current price is more than what you paid, you can sell at a profit. If you mean you can't *predict* when you will be able to sell at a profit, then yes that's more difficult. If you buy a bunch of bonds with 3-month maturity, then the average maturity of your portfolio starts at 3 months, and steadily decreases to zero three months later. If you instead buy a bond ETF with 3-month average maturity, then three months later your portfolio will still have a 3-month average maturity. Those are two quite different things. The first portfolio has a predictable value at T+3mth, while the second has a variable value based on the prevailing market for 3-month-maturity bonds at that time.
JNK volatility is from duration and credit risk, not because its an ETF. There are very short term bond ETFs that will have essentially no volatility because they hold short term, low risk. Its about the actually underlying assets, not whether its in an ETF or if you hold the same bonds in a self managed portfolio, the volatility will be the same, the ETFs just automatically roll bonds over for you vs if you hold to maturity your duration risk decreases until you just have cash.
If you research the historical pricing of JNK, you'll see that the NAV doesn't have any pattern behavior on the ex-dividend dates. It's unclear when you can sell for a profit because the NAV is reactive to market conditions, which includes not just actual changes in the FFR (i.e. the Fed's actions), but also investors' *speculation* about what might happen with the FFR. Also the type of bond and duration both matter. Junk bonds (high yield corporate) aren't as sensitive to the FFR, whereas U.S. Treasury bonds totally are. Longer duration is more sensitive than short.
Stick for bonds until stocks correct and be patient while you gain some experience learning about market cycles. Look at the bond market right now - it crashed during all of 2023 while stocks have reached new ath’s. Now that bonds are bidding at a discount while stocks are overvalued, and while retail flows into stocks are at new highs as well, fund managers and pensions are taking profits in stocks and loading up on bonds. Meaning smart money is dumping stocks to retail investors who are selling their bond allocations at the bottom while buying overvalued stocks chasing the fomo stock rally. The fed has raised rates and as of now they are pausing. This could change and this is the risk you need to be researching. Historically, stocks see a correction after the first rate cut. All the media and news touting bullish rally and rate cuts will send markets up another 20% whatever is complete nonsense. Look into bond etfs - many pay dividends monthly and bonds are discounted rn which financial networks are completely ignoring. Investment & junk grade. LQD, HYG, JNK, AGG, ANGL, SPHY, VCLT, BND, BNDX (emerging market bonds), etc. Given the current economic data, global conflicts, and worldwide elections in 2024, this is not the year to dump all your money into stocks, especially heading into the US presidential election with stocks absurdly overvalued and chipmakers going vertical because of government subsidies fueling competition for global dominance in semiconductors. Keep your cash in a money market fund for the next year and slowly begin accumulating bond etfs routinely based on your risk tolerance. Preserve capital. Wait for a crash/correction. Buy assets when they’re discounted not overvalued. Cheers!
I get your perspective on 10y and you could be right. My thoughts on the 10y are that short term inflation is not all that's worrying bond peeps right now. It's also the national debt and long term inflation expectations. The longer we hold rates up the worse our debt and debt service gets. Thus long term inflation gonna be worse. I think market is pretty comparable with short term inflation situation unless JP goes back to 0-2% quickly. Everyone is saying strong economy and all these new jobs, but looking under the hood it's not quite as good. Job openings have been falling since like end of 2022. Job openings and quits look more like a recession then a boom. Only thing really keeping us afloat right now is crazy deficit spending imho. I donno. Maybe you will be right about the 10y. I've got puts on JNK right now. Think there is a chance the junk bond spreads start to widen. So far it's doing well.
Glad to have SPY call and JNK puts right now, but DXY lookin quite bearish. Most big earnings are out of the way as well, so I don't see many positive catalysts coming up
JEPI, 0.35 JNK 0.40 QYLD 0.60 Won’t bother listing more. They are easily discovered. An index fund is an index fund. It makes no difference whether it’s a mutual fund or an ETF as long as it’s net return matches the index. Go look up, VOO, SPY, FXAIX, and VFIAX which all track the S&P. Again, you’re confusing the distinction between managed funds versus index funds – not between mutual funds and exchange-traded funds.
Got some puts on JNK yesterday. Thinkin that is the safest way to play it. Felt good about it at the time, so far upside down. Will probably wait until next week to see how its playing out. Also have a TLT position, so playing spread more than anything
picked up some JNK puts here. Might get some tlt calls to play the spread if it falls a bit more
When I got to $300k in assets is when I started feeling like my investments were doing some heavy lifting. At $300k a 10% return is $30k and that was about as much money as I could contribute in a year at the time. Now that I am over $1M it is insane. Making $100k+ in a year is pretty common and that is more than I ever made from my w2 income. My highest w2 income was $75k per year. Now here is the other thing about having assets. The more money you have the more money you can borrow and the cheaper the interest rate you pay. With $1M in assets you can go over to interactive brokers and borrow money at roughly 6% interest right now for a margin loan. So, what you do is you borrow say 10% of your portfolio which IMHO is very conservative. So that is $100k. Your interest rate is 6% per month. So what you do is you can be conservative and buy $100k of an ETF like PFFA which is an ETF of preferred stocks, which are quasi-bonds. With PFFA you make 9.45%. So, PFFA will pay for itself and give you an extra 3.45%. Also because these are preferred stocks the income is mostly going to be qualified dividends taxed at 15%. Anyway by the end of the year you own the $100k of PFFA free and clear and you probably made some extra profit off of it too. Your margin is back down to 0% and you can do it all over again next year... It doesn't have to be PFFA. That is just IMHO a pretty conservative option. You have tons of options. JEPI is 8.35%. JEPQ is 9.90%. JNK is 6.36%. SPYI is 11.94%. QYLD is 11.68%. TLTW is 19.79%. SVOL is 16.18%. Blah blah blah blah... tons of options all which will cover the margin loan rate. So at the end of the year you now have an extra $100k in assets. You can borrow up to 50% on a margin loan but I wouldn't recommend it. IMHO using 10% is very conservative and extremely unlikely to get you into a margin call. Even if your assets fall by 50% then you are still only using 20% margin, and you can always sell some of the assets back to reduce your leverage back to 10% or whatever. There is no need to sell though as what you purchased with the margin debt is going to cash flow enough to pay itself off and then some.
Look at bonds - bonds are currently rallying off the lows after a substantial bear run and people who were short bonds have closed their shorts and gone long bonds. Stock indexes have basically chopped sideways for 2 years after a decade-long bull market from the GR lows followed by insane QE which is now slowly being reeled in by QT. If you’re worried about stocks correcting, the bond market is looking much more appealing. AGG, HYG, LQD, JNK, VCLT, TLT, SPHY, ANGL And understand the relationship between bond yields and bond prices.
Facebook marketplace better than Craigslist for used cars in my area. Short $JNK if you want to bet against those loans.
The average duration of HYG and JNK is like 6 years. You cant compare them to 20yr and 30yr treasuries. IEI is more comparable.
$HYG and $JNK have outperformed $TLT over the last 6 months. 🤡 Is this a “risk-off” environment or is this treasuries crash simply a bet on inflation/rates ?
Corporate bond etfs are really close to yielding 9% - some are already over it. If you look at JNK it's also very near to its 2008 and Covid lows. Downside may be limited as long as we end up, economically, somewhere in the middle of soft landing back to low rate stimulus and absolute catastrophe. You can lock in a contractual yield for what \*most\* people think broad stock indexes do long term. Most advisors promise 5-7% in the medium term. Crush that. \~10% is a decent expectation for stock etfs - 9% by contract is pretty nice. I'm holding a tiny lil' bit just for funzies, but am over 50% in short term treasuries.
Treasuries yes, but corporates are much less certain. If interest rates drop due to a significant recession, corporate yields may rise due to increased risks. For example, VCLT, a long term investment grade corporate bond ETF dropped 27% in value during the covid crash when interest rates dropped to 0, nearly as much as the stock market. JNK, a high yield bond ETF, dropped nearly 50% during the global financial crisis.
Checking my account this morning, I was surprised to see an extra $980 in cash balance. Then I realized that was my QUARTERLY dividend from the 1000 sh or Altria just distributed yesterday. Yup, Altria has a 9% dividend yield. Also recently bought some JNK that yields 6.6%, was also looking at AMLP with 7.6% for my 401k acct. Point is, if you like dividends, there are perhaps better alternatives than 2% dividend yield.
My most recent buys are FICO, JNK and HEWJ, but I don't know, the higher rate for longer narrative can really up end the belief built up from the last 20 years of holding QQQ-like things.
Yall are wusses. Buy JNK or HYG or stfu
What do you think of FALN vs JNK
What’s your opinion on FALN vs JNK?
JNK correlation to SPY .88 AGG correlation to SPY: -.08 These are only 3 month numbers but there you go, I looked up the data
The ticker is $JNK. For corporates its HYG. The way to hedge corporate default risk is shorting corporates i.e. SJB
90.69 is unironically critical for JNK
just going to pick out some interesting moves DOCU: -19.3% FRC bank: -20% asset managers being fucked: OWL: -9% KKR: -9% APO: -8% SCHW : -8% funny bank moves: DB (deutch bank? dodgy bank): -5.3% MFG: japanese bank: -6.5% JNK: JinkoSolar China -14% Peloton: -11% SOFI: -9%
LEAP calls on TLT or JNK are a great way to gain leverage.
All sorts of weird fuckery happening in HYG and JNK 
HYG, LQD, JNK all up 0.2% today while SPY 1%. Big ooof
Well it can be. A CDO for example, collateralized debt obligation, is a bundle of junk bonds. The idea is that by bundling them together, risk is lowered. These were sold as investment grade in the run up to GFC, of course, we know now that they weren’t investment grade, they were in fact junk. This is I think no different than buying HYG or JNK. But then there’s other things, if you want exposure to mortgage debt, auto loan debt, even credit card debt, it has to be securitized first. I can’t just buy Joe McMuffin’s credit card debt from his bank. After it’s securitized, you can.
Give it up 🐻, it’s over. Russian Ukraine war was a big fat nothing burger l, likely to end with a Ukraine W this year. Inflation is gone. There was no energy shortage in Europe. In a couple of months, it’ll start warming up there. You’ve been wagging your finger saying “jUsT wAiT fOr eArNiNgs” for like 3 earnings seasons already. Each time, earnings have come out solid LMAO. Rate hikes causes a hiccup but risk assets are back on their way up to the moon. 🌽, HYG, JNK, QQQ all up like 10% from their lows. May the next decade long bull run bless us all with eternal tendies and financial security.
Go look at the SEC yield on a high yield bond index like JNK and the top companies in it. A lot of the companies in it may not have investment grade quality but are unlikely to default any time soon. Another reason why an active approach is likely better than just an index fund, so that you can vet out the companies better, use entire yield curve, etc.
Yes, that's why I'm looking at $HYG and $JNK.
So who here would buy puts on JNK? I think bond markets are in danger.
I've been in and out of TLT, TMF, and EDV since their lows. They might be getting frothy at these levels, but going to continue adding on pullbacks until they are at 30-50% of my port. I think this market is still under pricing the risk of recession here. I'm not a bond expert at all, but for example I look at BAMLH0A0HYM2. Pretty sure that represents the spread between junk bonds and treasuries. Basically how much risk of shit companies going bankrupt. We are not even at 2018 highs right now. Real time inflation data is showing inflation has started rolling over. That was the biggest risk to these long bonds. TLT, TMF, and EDV saw huge buy volume at their most recent lows and have been gaping up like crazy. Currently at overbought rsi levels so now might not be the best buy time. I will be adding every pullback. I suspect we don't see a high PPI number Friday leading to more buying. I think lead up to FOMC will see some profit taking and will be the real test of if the long bond rally has legs. I'm also considering puts on JNK/HYG when I need to reduce rate risk for a more rate neutral strategy.
From a relationship standpoint, I would not do it because if it goes bad you lose both an investment *and* a close friendship. From an investment standpoint… if you want a somewhat risky return on debt, a diversified fund of over a thousand high-yield corporate bonds across all 11 sectors like JNK (which is 90% BB and B rated bonds by S&P) is currently yielding around 9.1%, or 19% over 2 years. These are mature companies like American Airlines, Ford, Staples, Netflix, Uber, Caesar’s Entertainment, etc. If any go bankrupt, you as the secured bond holders are the first in line to get repaid. So… you get better expected yield, with a contractual authority for recouping your principal, without the ENORMOUS idiosyncratic risk of lending everything to one company, and you have rating agencies and audited financials to help ensure you’re not investing in a ponzi scheme. Seems like an easy decision to me
> first of all the bond durations are different on all 3 of the tickers...HYG around 10, JNK around 6 and TLT around 25 good point, thanks
first of all the bond durations are different on all 3 of the tickers...HYG around 10, JNK around 6 and TLT around 25 second of all...nominal growth is high and corporates have strong balance sheets...inflation coming down will be bad news imo.
looking at $HYG, and $JNK, and comparing with $TLT the last 3 years what the fuck
i mean they basically bought JNK in April, plus TWTR is more leveraged and more distressed now than the typical junk bond company, so losses would be like 20%
JNK is corporate bonds if they move up continuously likely fed rates are wrong as in a pivot has to come.
> orderly selloff Are you watching this market action? Treasuries having worst YTD performance since the 1700s. Multiple days where 10Y yield rose around 30bps in a single day. Junk bonds doing even worse. The last time JNK traded at this level was during the global financial crisis. I guess orderly is subjective but it surely doesn't seem orderly to me. Now we even have mainstream media and commentators such as Yellen starting to agree that bond market liquidity is a possible issue
The volume on HYG and JNK bonds today 👀
Ride it out until BBBY files for bankruptcy? This stock was a meme short squeeze trade not an investment and the fun is over. It’s time to cut your losses before you lose even more. Sell then buy some monthly dividend paying bond and equity etfs while yields are rising and asset prices are declining. HYG JNK ANGL PFF PGX SPHY SPHD etc. With dividends reinvested you’ll accumulate shares at a discount until markets begin to rise again and the profits will stack up quick. But dump this garbage stock and move on. Do you really think BBBY is a viable company to invest in? There’s a reason hedge funds and institutions were shorting this company into the ground!
Have you guys looked at JNK ? It does not look good 