Junk-bond ETFs rallied on Wednesday, as markets breathed relief that the “fiscal cliff” is no longer a concern and as a result, bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Trends.
The iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG) reached $94.23 a share—its highest level since 2008—while the SPDR Barclays High Yield Bond (NYSEArca: JNK) hit a two-year high of $41.05, says ETF Trends.
Speculative bond yields continue to fall, though they’re still above 5 percent, as investors are flocking to junk bonds as a way to boost income, the article said.
Head over to ETFtrends.com for the full story.
