Junk Bond Bulls Outlast October Swoon As Losses Wiped Out

Ted

FYI: Junk bond investors who held their nerve through this month’s global selloff have recouped all their losses as the riskiest part of the corporate credit market again demonstrates its resilience.
Led by healthcare company debt, speculative-grade notes have returned 1.88 percent since the middle of the month,, according to Bank of America Merrill Lynch’s Global High Yield index. The rebound erased losses of 1.16 percent from the first two weeks, leaving gains for October at 0.71 percent.
Regards,
Ted
http://www.bloomberg.com/news/print/2014-10-31/junk-bond-bulls-outlast-october-swoon-as-losses-wiped-out.html

catch22

True. But, most HY, active managed funds remain flat/neutral at this time for pricing.
If the pricing remains the same going forward for a sustained period, an investor may still find a yield range of 5-6%. The capital appreciation may not be in place as during the past several years.
Today (with the crazy upward moves in global equity markets) may provide some more clues for the HY sector. Although one should consider that if the flows to equities remains strong, some of these monies may not travel the HY road right now.
Take care,
Catch

Ted

@catch22: If see a fork in the road, take it.
Regards,
Ted

heezsafe

@Ted Thank you, Yogi.

Old_Joe

How about a spoon or knife?

heezsafe

All this "swooning" and "surging" in the financial press--- are they trying to make everyone develop cardiac arthymias? It feels like oxygen is leaving the room.