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The managers for the fund also helm the BlackRock High Yield mutual fund, which has a four-star rating from Morningstar and a yield of roughly 6.5%. Other recent launches include the John Hancock High Yield ETF (JHHY) , an Invesco BulletShares 2032 High Yield Corp. ETF (BSJW) , and the AB Short Duration High Yield ETF (SYFI) , which was a conversion from a mutual fund. The new products come as the next steps for high yield debt are unclear. High yield investors say that the sector is still on solid ground, at least for now. Four of the five biggest broad-based high yield bond ETFs have seen inflows over the past month, according to FactSet.
Persons: Jay Jacobs, John Hancock, Michael Schlembach, Schlembach, AJ Rivers, Rivers Organizations: Morningstar, BlackRock, John, Yield Corp, Treasury, Federal Reserve, Marathon Asset Management Locations: BlackRock, U.S
WASHINGTON, Oct 27 (Reuters) - A sell-off in the U.S junk bond market is presenting investors with a buying opportunity but some are holding back, worried that a looming recession could spark widespread credit defaults. That level is the highest for yields since April 2020, while the index is down some 13% this year. That level is a critical zone of credit stress where credit markets become vulnerable to dysfunction, said Oleg Melentyev, credit strategist at the bank. DEARTH OF OFFERINGSAt the same time, risk aversion has slowed new bond issuance in the primary high-yield market to a trickle. That could change in 2023, however, if a recession further dampens activity in primary markets and borrowing costs remain high, spurring potential defaults in the lowest rungs of junk-rated bonds.
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