OXLCP - High-Yield Bonds: Not So Junk Anymore
The new Fed balance sheet winning number is $6.08 trillion!
But the truly winning lottery ticket was US high-yield ("HY") aka junk, bonds. These lower-rated types of debts, as the Fed fired another $2.3 trillion bazooka, expanding its asset shopping list to also include junk bonds (for the first time ever).
As a result, US junk bonds (HYG, JNK, BKLN, HYLB, SHYG, SJNK, USHY, SRLN) rally most in two decades, with Fed now a buyer.
After reaching 1100bps on March 23, the widest level since the