Toss Your Junk (Bonds) in the Trunk – Linkfest (Aug 5)

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For those looking for income, the last five years have been a struggle to say the least. Low interest rates have caused many investors to look beyond traditional income sources. One of the chief parking places for their cash have been high-yield or junk bonds. That’s all well and good … until the music stops. And it looks like the music may be stopping. As investors have fled the markets and the fears of a correction have taken hold, junk has been one of the hardest hit. Here’s Tracy Alloway and Vivianne Rodrigues at the Financial Times with more on junk’s downfall.

Private Equity Beat/WSJ (Rob Copeland): The hedge funds & private equity players are starting to short junk debt — even the ones who syndicate and issue this stuff.

The Reformed Broker (Josh Brown): So what happens when everyone runs to the exits in junk bond land?

USA Today (John Waggoner): The huge iBoxx $ High Yield Corporate Bond ETF (HYG) wasn’t the only junk bond fund to get hit hard lately. These funds suffered even more.

ETF Trends (Tom Lydon): But not the ProShares Short High Yield ETF (SJB). This junk bond ETF is soaring.

Barron’s Income Investing Blog (Michael Aneiro): So when will the junk bond correction be over?

SL Advisor Blog (Simon Lack): Shenanigans in untraded REIT land.

Bloomberg View (Leonid Bershidsky): Banks need to take on more risk.

The Wall Street Journal’s Digits (Brian R. Fitzgerald): Microsoft (MSFT) scores a touchdown. The NFL is going to use Surface Tablets this year.

Quartz (Svati Kirsten Narula): Coca-Cola (KO) says it’s sorry with a formula change. Apparently, it didn’t remember the New Coke outrage of the 1980s.

Aaron Levitt is an investment journalist living in Ohio. With nearly two decades of experience, his work appears in several high-profile publications in both print and on the web. Also likes a good Reuben sandwich. Follow his picks and pans on Twitter at @AaronLevitt.


Article printed from InvestorPlace Media, https://investorplace.com/2014/08/junk-bonds-hyg-sjb-msft-ko-linkfest/.

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