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The five-year chart for the iShares iBoxx High Yield Corporate Bond (ETF) ($HYG) shows a sharp pullback since mid-2014.

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The pullback in HYG coincided with a sharp drop in oil prices, which hurt the financials of shale producers. Majority of the shale producers were funded by cheap debt and as oil prices tumbled, concerns over default rose. But after oil prices have bounced back in the last three months. More important, the fundamentals of the oil market have improved. Therefore, the risk of default has reduced somewhat. It is not surprising to see that HYG has rallied more than 6% in the last three months as oil prices have recovered. I believe that the risk/reward profile for HYG has turned favorable.