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Junk companies etf?


scorpioncapital
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Is there an index or etf of over leveraged bad businesses one can buy (or perhaps short). Or even a junk bond fund ?

 

HYG is the junk bond fund ETF.  I would not short that as on Friday the Fed literally said they were going to start buying it.  Crazy times we live in.

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Yes HYG is interesting.

I had built a position in WYDE (the mirror image of HYG) but WYDE was liquidated last August because of insufficient investor interest. :(

The last time I checked, high yield oil and gas made 11% of HYG.

But then again, it looks like banks are getting ready to take over the oil and gas industry and the Fed set up an SPV (this is not a joke) funded by the Treasury (this is not a joke) that will buy everything that looks distressed.

How do you deal with that?

It is the best of times, it is the worst of times.

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So this HYG is supposed to go down over time to zero? Or is it structured to go up when companies stocks do badly?

 

It actually says "Shares iBoxx $ High Yid Corp Bond"

 

so I guess this is junk bonds etf. I was thinking the same thing but for the equity portion.

 

I'm actually looking for something that will do badly, as a hedge. But maybe this is the wrong way to do it.

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  • 4 weeks later...

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