FHY - Junk Bonds Still 'A-Okay'
In the last five years, every time the stock market weakened by a similar magnitude as we saw this October, there was notable junk bond credit-spread widening. Even if one goes back further in time and looks at all sell-offs in this bull market that started in March 2009, one would see that sell-offs in the stock market correlate pretty well with sell-offs in the junk bond market - but not in 2018.
There was very marginal widening of credit spreads this month, which is nothing like what happened in the 2015 and 2016 sell-offs