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International HY corporate bonds

Posted: Mon Feb 11, 2019 4:47 am
by fennewaldaj
I was just curious if any of the people here who invest in US HY bonds also invest in international high yield bonds? It appears the credit quality is a bit higher than US high yield (62% BB).

https://www.vaneck.com/etf/income/ihy/overview/

Its also not super correlated with US HY

https://www.portfoliovisualizer.com/ass ... ingDays=60

Unfortunately this is a relatively new fund so there is not a lot of correlation data. Does anybody know of an older mutual fund that specialized in HY foreign cooperate debt that could be used to run longer correlation numbers?

Re: International HY corporate bonds

Posted: Mon Feb 11, 2019 4:50 am
by Valuethinker
fennewaldaj wrote:
Mon Feb 11, 2019 4:47 am
I was just curious if any of the people here who invest in US HY bonds also invest in international high yield bonds? It appears the credit quality is a bit higher than US high yield (62% BB).

https://www.vaneck.com/etf/income/ihy/overview/

Its also not super correlated with US HY

https://www.portfoliovisualizer.com/ass ... ingDays=60

Unfortunately this is a relatively new fund so there is not a lot of correlation data. Does anybody know of an older mutual fund that specialized in HY foreign cooperate debt that could be used to run longer correlation numbers?
I doubt the credit cycles are that uncoupled - at least in the Financial Crash sort of way.

Does the fund currency hedge?

Re: International HY corporate bonds

Posted: Mon Feb 11, 2019 4:54 am
by fennewaldaj
Valuethinker wrote:
Mon Feb 11, 2019 4:50 am

Does the fund currency hedge?
Yeah I thought of that after I just after I posted. It looks like it does not and it is ~36% non USD currency.

Re: International HY corporate bonds

Posted: Mon Feb 11, 2019 6:53 am
by Beliavsky
fennewaldaj wrote:
Mon Feb 11, 2019 4:47 am
I was just curious if any of the people here who invest in US HY bonds also invest in international high yield bonds? It appears the credit quality is a bit higher than US high yield (62% BB).

https://www.vaneck.com/etf/income/ihy/overview/

Its also not super correlated with US HY
I think that for less liquid assest classes such as high yield bonds, especially foreign high yield bonds, closed-end funds should be considered, especially when they are trading at larger discounts than usual. There are many high yield CEFs, and some of them do have foreign exposure.