Click here to read the original article on ETFdb.com.
Related Posts:
Van Eck Debuts Fallen Angel Junk Bond ETF (ANGL)
April 11, 2012 at 09:42 AM EDT
Van Eck continued a recent trend of expansion in the junk bond ETF space today with the launch of a product that targets a unique segment of the high yield bond market. The new Market Vectors Fallen Angel High Yield Bond ETF (ANGL) will focus on debt that was originally rated as investment grade quality at the time of issuance. In other words, the component securities were once deemed to be of relatively low credit risk, but have since been downgraded to “junk” status. Most ETFs in the High Yield Bonds ETFdb Category don’t screen based on the rating status at the time the bond was issued, focusing instead on the current credit rating assigned. ANGL, which seeks to replicate the BofA Merrill Lynch US Fallen Angel High Yield Index, will include bonds that have fallen out of favor with investors since they were first floated, perhaps because of deteriorating conditions [...] Click here to read the original article on ETFdb.com. Related Posts: iShares Rolls Out Ex-U.S. Junk Bond ETFs (EMHY, HYXU) High Yield International Bond ETF Debuts (IHY)
Van Eck continued a recent trend of expansion in the junk bond ETF space today with the launch of a product that targets a unique segment of the high yield bond market. The new Market Vectors Fallen Angel High Yield Bond ETF (ANGL) will focus on debt that was originally rated as investment grade quality at the time of issuance. In other words, the component securities were once deemed to be of relatively low credit risk, but have since been downgraded to “junk” status. Most ETFs in the High Yield Bonds ETFdb Category don’t screen based on the rating status at the time the bond was issued, focusing instead on the current credit rating assigned. ANGL, which seeks to replicate the BofA Merrill Lynch US Fallen Angel High Yield Index, will include bonds that have fallen out of favor with investors since they were first floated, perhaps because of deteriorating conditions [...]
