In the financial crisis that is brewing the government has stepped up to alleviate the pain from Covid-19 for many companies that would be crashing without help. We expect a gigantic wave of corporate defaults and bankruptcies. Given the dept of the crisis expect many of the defaulting companies to end up in liquidation unable to shed their debt burdens. The sheer amount of debt that will be needed to be restructured will pose a insurmountable challenge. It is possible that the overhang of debt will choke off the flow of new capital and corporate investment.
List of High Yield Bond (Junk Bonds) ETF'S
Symbol Name Price Yield
HYG i Shares HYB ETF 75 3/4 5.69 %
JNK SPDR Barclays HYB ETF 92.8 6.24 %
SJNK Barclays S/T HYB ETF 23.15 6.38 %
HYS Pimco HYB ETF 83.88 5. 3/4 %
USHY i Shares Broad HYB ETF 34.90 6.70 %
Stephen P. Vlahos
Performance Plus Advisors, Inc.