Facebook Twitter Gplus YouTube E-mail RSS
Home Market Comments Keep an Eye on Junk Bonds

Keep an Eye on Junk Bonds

Published on April 9, 2014 by in Market Comments

Over the past month High Yield (junk) bonds (JNK) have lagged the performance of Investment Grade (high quality) bonds (LQD). This shows a move to quality within the bond space.  In addition, money that came out of stocks during the last dip went into quality bonds instead of high yield. Bulls want to see JNK recover their previous highs.  As neither a bull nor a bear, but a guy who changes my portfolio allocations based on the evidence I’m keeping an eye on JNK vs. LQD.  If the divergence continues it will warn of investors slowly moving away from risk.

Tags: ,
 Share on Facebook Share on Twitter Share on Reddit Share on LinkedIn
1 Comment  comments 

One Response

  1. RG

    Great observation. Thanks for the heads up.

Add Comment Register

Leave a Reply

Your email address will not be published. Required fields are marked *

HTML tags are not allowed.