HYG - High yield corporate debt seems like a good short right now. I have a habit of putting small trades on things I don't understand, seems with a little skin in the game, I tend to research and follow much closer. I am a little confounded by the 9% jump up overnight on 4/8/20. Is this maturity or called debt that is not renewed? Or a disbursement at a lower price? Suggested reading would be greatly appreciated.
I trade lots of debt ETFs, as mentioned above the Fed had to step in because nobody was willing to put up bids for debt. Next their gonna buy stocks ETFs.
I hardly ever made decent money buying bond ETFs. I sold puts on HYG and TLT lately and made decent money on them, but they just seem spookier than stock ETFs, more controlled by the government. I resolved to trade only stocks and stock ETFs.
But: https://www.bloomberg.com/amp/news/...est-junk-etf-near-record-after-fed-s-backstop “Short interest on the $16.3 billion iShares iBoxx High Yield Corporate Bond exchange-traded fund -- a rough indicator of bearish bets -- is near 38% of shares outstanding, according to data from IHS Markit Ltd. That’s close to a record of 39% reached in late February for the fund, which uses the ticker HYG.”