Bears Stampede Out of High-Yield ETFs With Fed Backstop in Play
- Short interest on State Street’s JNK at lowest in four years
- Investors pile into bond ETFs despite tensions, virus risk
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Bearish bets on exchange-traded funds that track high-yield bonds plunged as the Federal Reserve stepped into the market.
Short interest as a percentage of shares outstanding on the $12 billion SPDR Bloomberg Barclays High Yield Bond ETF, ticker JNK, sank below 2% -- a four-year low -- after surging to as high as 25% in early March, according to data from IHS Markit Ltd. For the $25 billion iShares iBoxx High Yield Corporate Bond ETF, ticker HYG, bearish wagers are at the lowest level this year.