SHYL News and Press, Xtrackers Short Duration High Yield Bond From 05/19/22

The primary concern for the public is by far inflation, not recession risk, and not the risk of a bear market in stocks given news headlines as a gauge of importance. The prior tightening seen in financial markets (10-yr UST yield jump) will likely weigh on future growth as measured b...

We have written previously about how hard it is for the Federal Reserve to determine policymaking interest rates when there is a simultaneous aggregate demand shock and aggregate supply shock. Finding a neutral real interest rate in periods of coincident epidemic shock and war shock i...

This year has seen significant volatility in credit markets given the tumultuous macroeconomic backdrop and hawkish Federal Reserve. Investment-grade bonds, bank loans, and high-yield bonds could perform differently now than in prior risk-off periods due to asset class-specific develo...

Looking for a tactical way to de-risk your portfolio? You might consider rotating a portion of your equity allocation into high-yield bonds. By shifting a modest allocation away from US equities and into US high yield, investors can actually boost risk-adjusted return potential. O...

Usually, widening spreads result in higher defaults. We don't think that's going to be the case this time. Traditionally, investors have viewed high yield as part of the fixed-income markets. Given that rates are going to rise, why would I invest in fixed income now? For fur...

Stocks are on track to register their sixth straight week of declines for the first time since the confluence of the eurozone financial crisis, credit rating downgrade of US Treasuries and a debt crisis debacle in Congress sent equities reeling in the late summer of 2011. When the S&a...

The US equity and fixed income markets are facing challenges due to a slowing US economy along with a significant pivot in monetary policy toward a more hawkish stance. Combating inflation has become a priority, and investor focus has shifted toward the uncertain impact of rising inte...

For investors worried about continued higher policy rates, duration risk can be hedged to various degrees while allowing investors to retain exposure to the credit risk. Many issuers in bank loan and private credit markets issue floating rate instruments where the issuer is exposed to...

Stolen, plundered, looted, and the list goes on. It is what has happened to our portfolios since the beginning of the year. Bonds, equities, you name it. While the Fed’s policies may well help our rate of inflation, now at 9.75%, averaging the PPI and the CPI, I do not see high...

This report seeks to provide macro-level data and insights across several income-oriented asset classes and strategies. The Fed was forced to play catch up after leaving loose monetary policies in place, despite inflationary pressures spreading across the global economy. Volatilit...