USHY: Keep Holding And Observing The Labor Market
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Node Analytica Research353 FollowersFollow5ShareSavePlay(9min)CommentsSummaryI maintain a tactical hold on iShares Broad USD High Yield Corporate Bond ETF, given neutral credit spreads and a still-below-50 ISM PMI.USHY offers broad, low-cost exposure (0.08% expense ratio) to USD high-yield bonds, with 1,954 holdings and a 6.55% average coupon.The ETF portfolio is concentrated in cyclical sectors and short maturities, making it sensitive to employment trends and refinancing conditions.The Fed's soft-landing scenario supports USHY's carry, but rising unemployment could widen spreads, especially in CCC tranches, pressuring returns. Pgiam/iStock via Getty Images The iShares Broad USD High Yield Corporate Bond ETF (USHY) is an alternative offered by BlackRock that provides very inexpensive access to the high-yield corporate bond market denominated in dollars. These high-yield bonds tend to carry a higher creditThis article was written byNode Analytica Research353 FollowersFollowNode Analytica is a macro - onchain research firm whose founders have developed systematic investment strategies in the digital assets market in order to generate competitive and uncorrelated investment returns for institutional investors.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.