The action in high yield (junk) corporate bonds over the last 6-12 months has definitely favored the bear case for stocks.  Below is a six-month chart of the HYG junk bond ETF with the nasty multi-month downtrend channel highlighted in red.  Since its low in late September, though, HYG has bounced along with equity markets, and in the process the ETF has moved above its 50-day moving average and also above the top end of its downtrend channel.  This is a good start for a more extended recovery in the high yield corporate bond market.

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