James Keenan, comanager of the BlackRock High Yield Bond fund, loves disarray in the markets.
International High Yield Bond shares are currently trading down about 0.3% on the day.
The longest available series for high-yield bond returns is the Merrill Lynch 100 High Yield Index.
Even worse for investors: Some funds haven't come close to matching high-yield bond indexes.
Anyone seeking a bid on a high yield bond had to be prepared to wince.
Consider a high yield exchange-traded fund like the Barclays High Yield Bond SPDRS ETF (NYSE: JNK).
"I think the heroic turnaround is somewhat overstated, " says George Lynch, a high-yield bond manager for Invesco.
The high yield bond market gets my money with its 500 basis points spread over 10-year Treasuries.
That move reduced all equity and high-yield bond exposure, creating 50% cash or cash equivalent allocations across all portfolios.
When they are deeply below net-asset value, as high-yield bond funds are now, they can be very good buys.
The high-yield bond market is returning as much as most stock markets anywhere.
On the face of it, these findings imply that high yield bond funds should concentrate their holdings in fallen angels.
Almost all the media coverage has the following chart, or similar stats regarding the inflows into high yield bond funds.
Computer models are written for everything from determining early pre-payments on mortgages to the probability that a high-yield bond will default.
In the year to date, however, narrowing spread levels have helped high-yield bond returns narrowly exceed those of loans (see below).
Two high-yield bond funds Appel is still holding: Northeast Investors Trust ( NTHEX) and Federated High-Yield Trust ( FHYTX) .
Vivendi had given itself some room to take less cash, say credit analysts, thanks to earlier asset disposals and high-yield bond issuance.
High yield bond spreads soared in 2008 by more than 400% to more than 700 basis points over Treasurys before declining in 2009.
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According to the methodology employed by certain Wall Street analysts, the high yield bond market is currently pricing in an 8% default rate.
If leveraged loan and high yield bond issuance continues at the current pace the leveraged finance market would see its first trillion dollar year.
FORBES: Leveraged finance volume sees record pace as M&A deals boom
If you believe the U.S. economic recovery remains on track, high yield bond funds and ETFs may be good vehicles for acting on your conviction.
The return on high-yield bonds according to the Merrill Lynch High Yield Bond Index is the highest it has ever been, at 7%, up 2.9% year-to-date.
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The chart of the SPDR Barclays Capital High Yield Bond ETF ( JNK) shows the drop through weekly support from the fall of 2010 (line e).
He and the firm created almost out of whole cloth the high yield bond market that financed so many cutting-edge corporate entities in the 1970s and 1980s.
Indeed, after evenly splitting the leveraged finance pie in January there was roughly twice as much loan volume last month as there was high yield bond issuance.
FORBES: Leveraged finance volume sees record pace as M&A deals boom
The junk bond market has lost much of its allure, as the SPDR Barclays Capital High Yield Bond ETF ( JNK) has had a rough few months.
Finally, we get to the high yield bond market which stalled out this past quarter on fears of decelerating GDP momentum, even a double dip recession in the wings.
Stephen Leeb , editor of Personal Finance, recommends taking a chance on junk bonds via a well-managed fund like the PIMCO High Yield Bond Fund ( PHDAX) .
At the same time the reports say that high yield bond issuance in dollar terms has never been higher, and yields on junk bonds have never been lower.
Market players relay that investors are scaling back their bets on the high-yield bond market ahead of earnings season and alongside a fifth consecutive session of declines in the equity markets.
FORBES: High-yield bonds pull back ahead of earnings season despite huge ETF inflow
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