SHYL News and Press, Xtrackers Short Duration High Yield Bond From 01/27/23

Summary 2022 has been a volatile year for credit markets, but a closer inspection highlights some striking differences. Yields on EM HY reached much higher levels (close to 14% at its peak), and spiked much faster, than their Euro and US equivalents, which peaked at around 9% in Q4 2022...

Summary Can the bond market rally last? What the rally in bonds means for the 60/40 portfolio. End of the rate hike cycle in sight? The bond market has started 2023 on a much stronger footing than it was on for much of last year. Greg Bonnell speaks with Scott Colb...

Summary The two key risks of fixed income are interest-rate risk and credit risk. Duration and high yield are often negatively correlated. We like the secured nature of securitized bonds. By Matthew Sheridan, CFA Transcript When we think about gener...

Summary While 2022 was one of the toughest years ever for markets, the final quarter provided some relief. Major central banks, including the Fed, European Central Bank, and Bank of England, continue to wrestle with stubbornly high inflation rates. There's much disagreement about wh...

Summary High yield bonds are back above the inflation line. The Bloomberg U.S. High Yield Index now stands at 8.19%, which is now more than 100 basis points over our average inflation rate. It has been gradually creeping higher, partially because of the Fed’s rate manipulatio...

Summary The current slope of the US Treasury yield curve is inverted. Two-year yields are higher than 10-year yields, and to us that means that investors are focused on a few things. We’re starting to see a slowdown in interest-rate-sensitive sectors, most pronounced in US housin...

Summary Stocks don’t bottom until central banks have slashed short rates enough to drop them back below long, re-steepening the curve to positive sloping once more. HY bond prices typically bottom with equities once HY yield spreads have reached 800+ bps above similar-term treasu...

Summary Following a protracted period of rate hikes that began in March 2022, both bond yields and yield spreads are at multi-year highs. Strong fundamentals are due in part to fiscal prudence necessitated by the COVID-19 pandemic. The European Central Bank has concluded its myriad ...

Summary At 429 basis points, the spread of the major junk bond index to Treasuries is dangerously close to the “inside 400” level, which is where it spends most of its time in a booming economy. I would not call the U.S. economy “booming,” as there has been a...

Summary Markets may be underestimating the stickiness of inflation and central banks’ determination to beat it - and what that means for growth and corporate earnings potential. We favor fixed income and credit over equities, and investment grade over high yield. Should infla...