HYG vs LQD , junk vs AAA

Discussion in 'ETFs' started by trade2live, Feb 8, 2011.

  1. Why the divergence ? Junk is way outperforming in the face of rising rates that are taking down the investment grade bonds. What does that imply for the junk bond market ?
    Seems to me that one or the other has to give, this divergence cannot continue for long, right ? Is this part of the general insanity of the current markets ?