Tom McClellan: Junk bond ETF pool shrinking as T-Bond prices decline

Tom McClellan: Junk bond ETF pool shrinking as T-Bond prices decline
Junk bond ETFs shrink as T-Bonds drop

Tom McClellan observes that the trend seen in cap-weighted bond ETFs also applies to junk bond ETFs such as HYG. He highlights that the pool of junk bonds has been shrinking over time, occurring in tandem with decreasing prices for Treasury bonds.

This development raises further questions about the dynamics of the junk bond market and its relationship with broader bond price movements.

McClellan has previously examined asset class correlations, including his view that gold movements may signal higher oil prices. He has also discussed the differences in Bitcoin Commitments of Traders (COT) data compared to traditional markets. These reports form part of his regular analysis of cross-asset trends.

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