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U.S. high-yield bond issuance for 2020 has eclipsed the prior annual sales record of $329.6B set in 2012, according to data compiled by Bloomberg, as companies reap the benefits of the Fed’s liquidity-boosting and zero-interest rate policies.

The support has effectively turned the industry into a borrower’s market, and all-in yields for U.S. junk bonds have dropped to 5.81%, near pre-pandemic levels.

Jitters may be coming… The biggest ETF focused on sub-investment grade debt, the iShares High Yield Corporate Bond (NYSEARCA:HYG), was hit by nearly $1.06B of outflows on Monday, the largest single-day outflow since the start of the coronavirus.

“Our sense is that further HYG weakening would be the confirming signal of real risk aversion,” said Arnim Holzer, macro and correlation defense strategist at EAB Investment Group.

ETFs: JNK, HYT, JQC, ACP, ARDC, KIO, HIX, ANGL, BGH, DHY, EAD, PHT, ISD, HYLD, GGM, CIK, DSU, AIF, SHYG, SJNK, HYS, IVH, MCI, NHS, SJB, USHY, CIF, HYLB, JSD



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