What is the current interest rate for junk bonds?

What is the current interest rate for junk bonds?

Junk Bond rates are historically low, around 4%. This is less than half of the historical average rate (around 9%).

Are bond ETFs safe right now?

Bond ETFs have less volatility and lower growth potential than stocks and stock ETFs. The safest bonds are short-term Treasury bonds. Corporate bonds can produce higher yields, but they are riskier than U.S. government bonds.

Is there a junk bond index?

The largest Junk Bond ETF is the iShares iBoxx USD High Yield Corporate Bond ETF HYG with $14.94B in assets.

What is the US high-yield market index?

The US High-Yield Market Index is a US Dollar-denominated index which measures the performance of high-yield debt issued by corporations domiciled in the US or Canada. Recognized as a broad measure of the North American high-yield market, the index includes cash-pay, deferred-interest securities, and debt

What is the S&P US high yield corporate bond index?

The S&P U.S. High Yield Corporate Bond Index is designed to track the performance of U.S. dollar-denominated, high-yield corporate bonds issued by companies whose country of risk use official G-10 currencies, excluding those countries that are members of the United Nations Eastern European Group (EEG).

What is the high-yield bond index?

The index provides a straightforward way for participants to take long or short positions on a broad basket of high-yield bonds, as well as hedge their exposure to the market. The Index is an over-the-counter product. The index is reset every six months with participants able to trade each vintage of the index that is still active.

What is a high yield bond?

A high yield bond – also known as a junk bond – is a debt security issued by companies or private equity concerns, where the debt has lower than investment grade ratings. It is a major component – along with leveraged loans – of the leveraged finance market.