HYLS News and Press, First Trust Tactical High Yield ETF From 12/08/22

Summary Amid the crosscurrents, two themes have prevailed during the post-pandemic years, which lend some perspective to the macroeconomic roadmap ahead: namely, the bipolar swings in macro policy and the forces of economic normalization. After one of the worst years for fixed income as...

Summary Even now, a recession (in 2023) isn't a certainty, yet if there's one it will surely be (one of) the least surprising recessions in history. Be careful what you wish for: "Pivot" is not a magic word/stance that will automatically/quickly fix everything. Be careful what you i...

Summary Today, the yield curve is more inverted than at any time since the early 1980s, so many are saying that means the chances of a recession are pretty high. Yes, today the curve is very inverted, but real yields are not particularly high. Low spreads suggest the market is relat...

Summary MDIV invests in 5 categories of high-yield securities in equal weight. It has lagged 2 similar ETFs for 6 years but beats them in 2022. Since 2012, the share has lost about 24% in price and 26% in distribution. How to manage capital decay in high-yield securities. ...

Summary With yield levels surging across the asset class spectrum, one could conclude that a semblance of ‘normalcy’ has returned to the fixed income arena. As we are about to embark on a new calendar year, the fixed income landscape has changed dramatically. From an i...

Summary U.S. investment grade and high yield spreads have been very resilient this year. We do not expect dramatic spread widening unless or until we actually see underlying credit conditions deteriorate. When we consider the paths that the Fed can take, we want to continue to...

Summary We believe that various fixed income asset classes are more attractive now and can serve as yield enhancers or portfolio diversifiers, or both, in a variety of market environments. Using broad high yield as an example, at current levels the overall yield would need to incr...

Summary Almost half of the option contracts being traded on the S&P 500, to the tune of $300 billion of notional each day, have one-day expiries or less. Across all listed ETFs and indices, an astounding $1 trillion of notional value in put options (bets that an index or ETF w...

Summary Rate hikes and tighter financial conditions drove fixed-income returns lower in 2022. The broad repricing of bonds and the higher starting yields we have now can help insulate investors from further losses. If we look at international bonds, this is probably the first ...

Summary High yield corporate bond ETFs offer investors strong, growing dividends. HYLS is a strong high yield corporate bond ETF, yielding 6.3%. An overview of the fund follows. Author's note: This article was released to CEF/ETF Income Laboratory members on Octobe...