https://seekingalpha.com/article/4312618-hyd-high-yield-munis-can-be-equity-hedge-understand-risksAn Equity Hedge, But Understand The Risks
Dec. 15, 2019 10:59 PM ETVanEck Vectors ETF Trust - VanEck Vectors High-Yield Municipal Index ETF (HYD)14 Comments
Summary
Many investors are looking for ways to hedge against a potential decline in equities, after an impressive run in 2019.
Municipal bonds are one of my preferred choices for fixed-income exposure, as they have historically low levels of defaults and a low correlation to the equity market.
High yield munis, however, are less attractive right now. Their spread with investment-grade munis has shrunk, and some bonds in the high-yield sector are struggling to manage debt obligations.