U.S. credit ETFs are probing lows again
U.S. credit ETFs are probing lows again as the tech wreck continues on Wall Street, raising concerns about the ability of borrowers to pay back their loans. The LQD iShares iBoxx $ investment grade corporate bond ETF is again lower near 111.38, having marked a 52-week low of 111.31 recently compared to its year high of 121.85, with trading volumes picking up on the way down. The HYG iShares IBoxx high yield corporate bond ETF also declined near 82.94, having marked a 52-week low near 82.74 recently vs year highs of 88.03. Losses and volumes have accelerated into November after the rout on stocks in October. The S&P 500 near 2,650 is well below its 2,760 200-day m.a., below 2.7k psych area and potentially on track to test 2,603 October correction lows if trends continue. On a 1-year basis, the major stock indices are still 1.3-4.6% in the green, but 3.6-7.6% lower on the month paced by the weakened NASDAQ.