Best way to bet on rising HY yields?

[tobbog]

Hey everyone,

looking at this chart,
https://fred.stlouisfed.org/series/BAMLH0A0HYM2EY
I was wondering what is the best kind of product or strategy to bet on a rising yield for high yield bonds.

Thanks for any input!

 

[R1234]

RYIHX

 

[ZBZB]

Short JNK. What are you going to do if the FED decide to buy all of them and the yield goes down?

 

[pipeguy]

Hey everyone,

looking at this chart,
https://fred.stlouisfed.org/series/BAMLH0A0HYM2EY
I was wondering what is the best kind of product or strategy to bet on a rising yield for high yield bonds.

Thanks for any input!

Short the corresponding index? I guess it's currently below its long-term mean but we have to adjust it for declining risk premium and risk free-rate too. At current stage it seems to be a bit premature to sell it.

 

[bone]

Central Banks are now openly in the Dollar Peg business by aggressively cutting rates AHEAD of the USFed.

Powell and the Fed are being forced into a negative interest rate scenario because the ECB is already there. Draghi has made it clear that he wants to continue cutting further into negative territory and the Bank and Currency Desks take this as the EU’s strategy to depreciate the Euro vs the Dollar as a means to compete.

So US Yields are headed further down because quite frankly the US is playing catch-up.

Draghi isn't done and Powell just got started. Even New Zealand cut 50 basis points.