JNK - JNK: The Backdrop For Junk Bonds Has Moderated (Rating Downgrade)
2024-03-19 01:41:39 ET
Summary
- The article evaluates the SPDR Bloomberg High Yield Bond ETF as an investment option at its current market price.
- I express caution due to the uncertainty surrounding rate cuts and inflation, which could limit the performance of the bond fund.
- The tight spreads in the market are also seen as a limiting factor for potential opportunities with the ETF.
Main Thesis & Background
The purpose of this article is to evaluate the SPDR Bloomberg High Yield Bond ETF ( JNK ) as an investment option at its current market price. This is a high-yield bond fund with a primary objective "to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg Barclays High Yield Very Liquid Index"....
JNK: The Backdrop For Junk Bonds Has Moderated (Rating Downgrade)