Quote from 007Arb:
The junk bond market was down 0.87% on Thursday per the proxy for junk bonds - the Merrill Lynch High Yield Master II Index. One of the worst days over the past 12 months but hardly of crash proportions. Bond commentators often look at the performance of the junk bond ETFs such as HYG or JNK to judge how junk bonds are performing but that is a very inaccurate picture of how junk bonds are actually trading as the ETFs can go to huge discounts (as occurred Thursday) due to a crashing stock market and panic among traders.
