Short Interest in High-Yield ETFs Hits Record

Photographer: Sarah Blesener/Bloomberg
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The recovery in high-yield bonds is on thin ice, according to a growing pack of investors willing to make a hefty wager on their conviction.

Demand to short the three largest exchange-traded funds tracking the asset class surged to more than $7 billion this week, according to data from Ihs Markit Ltd. published Wednesday. That’s the highest on record.