Investors Can’t Get Enough Of Junk Bond ETFs

For investors used to living off of juicy coupon payments from fixed income portfolios, the last several years have been trying times. As central banks around the world slashed benchmark rates to stave off a recession and investors flocked to safe haven investments, yields on high quality fixed income securities have plunged to a fraction of levels prevalent for much of the last decade [see Five Safe Haven ETFs]. Many investors are starved for yield, and unfortunately it looks like the cupboards are still bare. With anxiety over inflation fading fast and the economy still struggling to get onto solid footing, expectations for a rate hike have been pushed far off into the future. The consensus now is that Bernanke & Co. won’t move benchmark rates off of record lows until well into 2011–and perhaps not even until 2012. With risk aversion still running high, the yields on many of the funds [...] Click here to read the original article on ETFdb.com. Related Stories: Junk Bond ETFs: Yields Too Good To Be True? Junk Bond ETFs: Too Good To Be True? Five Bond ETFs For Yield-Hungry Investors