U.S. HYG high yield corporate ETFs have been inching lower
U.S. HYG high yield corporate ETFs have been inching lower again after their rebound from early February lows that coincided with the plunge in the VIX equity volatility index and jump in risk aversion on stocks. Over the past monthly the HYG tumbled from the 88.0 area to sub-85.0 before rebounding to 86.5 then sinking again to 85.5 presently. That suggests some risk aversion continues to linger in the corporate debt space as the Fed continues to tighten the screws. In terms of the LQD investment grade corporate ETF price action has been more negative, as it has extended declines from over 120.70 in late January to lows near 116.00 presently with only minor retracements for a -4% YTD return. Perhaps the prospects of tariffs and other emerging trade protectionism are having a more pronounced impact on large cap multi-nationals.