ISHARES PLC ISHARES EURO HIGH YLD CORP BND UCITS ETF IHYG S
December 11, 2015 - 10:35am EST by
torico780
2015 2016
Price: 104.02 EPS 0 0
Shares Out. (in M): 41 P/E 0 0
Market Cap (in $M): 4,300 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT 0 0
Borrow Cost: General Collateral

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  • High Yield
  • Europe
  • Secular Short
  • Highly Leveraged
  • Illiquid
  • Cyclical

Description

US high yield down 9 pct last 6 months 

European high yield down 4 pct last 6 months

Basically this is a jump on the short HY trade at a much better price in an even more illiquid market

Someone is asleep at the wheel due to low deposit rates that forces investors to buy anything with yield. 

If you don't know why you should be short high yield at this point of the cycle there are about 600 articles you can read from 2007 and about 30 from last year. 

To summarize:

Low yields

Low spreads

Low default rates

Ever higher corporate leverage 

I am short and will trade however I want to without advising on my actions. 

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.

Catalyst

Third Avenue Fund is liquidating a US High Yield fund but they are stopping redemptions first to protect investors given the absolute lack of liquidity in the market. Smells of Bear and HSBC mortgage funds in 2007. 

 

http://www.zerohedge.com/news/2015-12-10/next-leg-junk-bond-crisis-third-avenue-focused-credit-fund-gates-redemptions-liquida

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