AVP - HYG & U.S. High-Yield Market Outlook: Week Ending February 16 2018
During the last week, HYG gained 177 bps (see Figure 1), most of gains came on Thursday and Friday, after financial market felt easier, even despite inflation report which, as many feared, showed higher than expected inflation on Wednesday.
The rally continued through Thursday and Friday causing large inflow of capital to HYG and, as a result, rise in NAV premiums from around zero in the beginning of the week to over 0.5%.
Figure 1. HYG ETF price dynamics during the week ending February 16
Source: Bloomberg Terminal
As can be seen from Figure 2,