iShares iBoxx $ High Yield Corporate BdHYG

ETF Research and Analysis

by Scott Burns

Suitability

We consider investing in high-yield corporate bonds to be similar to investing in the equities of companies with highly leveraged balance sheets. As such, an investment in high-yield bonds or an ETF with a high-yield focus like iShares Read more

Bull Case

iShares iBoxx $ High Yield Corporate Bond gives investors diversified exposure to the high-yield bond market.

This fund has low costs relative to actively managed funds. Read more

Bear Case

High-yield bonds have been hammered in the recent credit crisis. Credit spreads have widened to all-time highs.

We expect high-yield corporate default rates to double over the next several quarters as a result of a debt hangover at corporate borrowers coupled with a deep economic recession.

The disruptions in the credit markets have caused this fund to trade at significant premiums and discounts to its NAV over the past several quarters. Read more

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The Best ETF Sector Idea for 2010
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iShares iBoxx $ High Yield Corporate BdHYG

ETF Research and Analysis

Bull Case

Bear Case

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