Despite the stubbornly low rate environment, exchange traded fund investors have been loath to pick up speculative-grade, junk-rated bonds. The decision may be prescient as the boom in U.S. corporate borrowing has exposed the segment to increased defaults among financially risky companies.
Junk Bond ETFs Could Face Credit Risks after a Year of Prolific Borrowing
Despite the stubbornly low rate environment, exchange traded fund investors have been loath to pick up speculative-grade, junk-rated bonds. The decision may be prescient as the boom in U.S. corporate borrowing has exposed the segment to increased defaults among financially risky companies.