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.
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.
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.