The Quest for Yield is Becoming More Challenging

ETF Trends | Jun 26, 2019 at 12:00 PM
  • Benchmark 10-year bond yields recently fell to record lows in Germany as well as France.
  • A 2 percent high yield default rate is projected for 2020 based on a record low 12 percent ‘CCC’ share of issues and only 5 percent of outstanding debt due before 2021.
  • As market headwinds from a trade war impasse buried the capital markets in volatility during the month of May, a de-risking occurred in funds specializing in high yield like The High Yield ETF (NYSEArca: HYLD).