To be honest, I have no clue why the High Yield and Junk bonds are performing so well, especially given the fact more than 80 % of these bonds are trading at a negative real yield. Probably there's still too much liquidity in the market, or as it often happens, portfolio managers just keep ignoring all risks, and happy to pick up every penny to make slightly...
Let's see how this plays out.
Either junk bonds collapse and the short goes up... or the junk bonds collapse and the short goes up and I profit.
I just have better bets to place at the moment (UVXY = junk trader position bond).