High Yield - If the slide carries on, it could reach the 80 mark
High Yield bonds had been under performing equities for a while (note, there is a ~ 6% annual coupon (dont know the exact figure) that is distributed monthly... so the chart understate the performance by 6% - Sp500 dividend...)
Now with Crude Oil falling hard, it seems as a big part of the index is related to shale gaz, there are distress situation out there...
if the slide carries on, HYG could go reach the same tension levels than in May10 or Oct11 around 80.
I would not know how to short it from here, just information, better short some toppish equity index if you believe in the short: R2K, TRAN etc..
Now with Crude Oil falling hard, it seems as a big part of the index is related to shale gaz, there are distress situation out there...
if the slide carries on, HYG could go reach the same tension levels than in May10 or Oct11 around 80.
I would not know how to short it from here, just information, better short some toppish equity index if you believe in the short: R2K, TRAN etc..