iShares iBoxx Dollar High Yield Corp Bond ETF (HYG)

[Talc Moan]

Some serious downside here with HYG especially in 2023. Many junk companies will struggle to acquire cash flow unless they go the Toxic dilutive route. This is holding strong near 52 week lows because many investors have no experience in a high interest rate environment. They think Junk will do well because of higher yields.

They won’t because you need buyers willing to risk and the higher rates go the money will leave risk and junk and go to safe US Treasuries.