BB Barclays HY Index YTW (yield) Lowest We have ever seen...Sub 3% Munis
We have never seen it below 3%... Close to 11% at the end of 2008... And above 5.5% last year while treasuries were cratering.... These numbers are about three things...1) Fear of higher income taxes... 2) lack of supply from issuers due to Federal money... And 3) the massive amount of free money from the Federal government, corporate issuance, and the Fed... We are not trying to say this is the bottom, because that is a foolish thing to say as tops and bottoms are tough to handicap.... But lets just take a line from the end of Movie "Trading Places" with Ackroyd and Murphy...
" Sell Mortimer Sell"
We have never seen it below 3%... Close to 11% at the end of 2008... And above 5.5% last year while treasuries were cratering.... These numbers are about three things...1) Fear of higher income taxes... 2) lack of supply from issuers due to Federal money... And 3) the massive amount of free money from the Federal government, corporate issuance, and the Fed... We are not trying to say this is the bottom, because that is a foolish thing to say as tops and bottoms are tough to handicap.... But lets just take a line from the end of Movie "Trading Places" with Ackroyd and Murphy...
" Sell Mortimer Sell"