Via Peter Tchir of TF Market Advisors,
There is still hope that the cash markets will see strong demand, but yesterday didn’t exhibit any rush to put capital to work.
With HYG and JNK and both trading at a significant premium (2% is a big premium in a 7% yield environment when the market isn’t bid without). We are at best case neutral on these, and if anything would be selling under the assumption they will underperform in a rally, and catch up quickly in a sell-off. HY17
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