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Buy and Sell High Yield Bonds

This is one of the few articles favorable to junk bonds that I've seen in months. She thinks there's a "buying opportunity" in junk now.
http://seekingalpha.com/article/2356565-recent-high-yield-dynamics?ifp=0

This hedge fund manager calls junk bond investors "fools" who don't realize the risk they are taking, then recommends shorting junk bonds by "directly shorting via futures, buying puts on junk grade bonds or even junk bond ETFs," which I guess he considers a low-risk strategy.
http://seekingalpha.com/article/2356765-the-worlds-most-crowded-trade?ifp=0

Comments

  • Be careful with Seeking Alpha as you may have noticed that very few articles are make reference to that site, i.e. It is not credible.
  • Recently, there have been a lot of articles about outflows from junk bonds but I don't see it in the price of HYG or Jnk - yes they off the recent highs.
  • I'm not going to make any comments on this board about junk bonds, but do think there are a handful of excellent writers on SA. It's like anything else when reading/browsing financial media - have a good filter.
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