Diary of a Financier

High yield: Curve flatness & optimal price per pound

In Capital Markets on Tue 7 Apr 2015 at 15:41

This is fairly straight forward…

SJNK vs JNK 2015.04.07We own SJNK over JNK, including some 3-5 year high yield paper (singlenames).  That’s despite the perceived risk of rising short term rates attributable to a tightening Federal Reserve policy rate (rising Fed Funds Rate) in a post-QE, post-ZIRP era.  The price per pound is far better in SNJK; far better risk/reward.

–Romeo

#Junk bonds

¹SPDR Barclays Short Term High Yield ETF ($SJNK): https://www.spdrs.com/product/fund.seam?ticker=SJNK
²SPDR Barclays High Yield Bond ETF ($JNK): https://www.spdrs.com/product/fund.seam?ticker=jnk

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