3309 Drysdale Ct
Edwardsville, IL 62025
Shouldn't corporate bond funds go down when interest rates go up? HYG is up today...?
High yield will tend to trade in line with risk-taking/equities more than in reaction to interest rate moves.
Their interest rates are high and if the market feels the economy is picking up then fewer
and fewer of the bonds will default, thus risk goes down and price goes up.
HYT is up and PHK is down today... go figure.
Subscribe to our email list for regular free market updates as well as a chance to get coupons!
watch your corporate bond funds
Posted by zach06 on 4th of Feb 2011 at 03:12 pm
Shouldn't corporate bond funds go down when interest rates go up? HYG is up today...?
High Yield vs Investment Grade
Posted by lessarda on 4th of Feb 2011 at 03:18 pm
High yield will tend to trade in line with risk-taking/equities more than in reaction to interest rate moves.
Their interest rates are high
Posted by tomoboyle on 4th of Feb 2011 at 03:16 pm
Their interest rates are high and if the market feels the economy is picking up then fewer
and fewer of the bonds will default, thus risk goes down and price goes up.
got you.
Posted by zach06 on 4th of Feb 2011 at 03:16 pm
HYT is up and PHK is down today... go figure.