Junk-Bond ETFs Are Facing the ‘Mother of All Resistance Levels’
- MRA says investors should be ‘fully aware’ of levels ahead
- High-yield ETFs have surged close to last year’s highs
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The rally in riskier tranches of the corporate-credit market may be due for a pause, with forceful resistance levels coming into view.
Both the iShares iBoxx High Yield Corporate Bond ETF, ticker HYG, and the SPDR Bloomberg Barclays High Yield Bond ETF, ticker JNK, are nearing price levels that have proved themselves staunch battle lines since the start of 2018. Investor thirst for yield, surging junk-debt issuance, rising oil prices and healthy risk appetite have all pushed the two exchange-traded funds within a hair of last year’s highs. Now the heavy lifting begins.