With Investors Piling Into Risky Debt, Yields Are Dropping Even Further February 10, 2021
Rates were at bottom-of-the-barrel lows during much of 2020, causing a voracious appetite for yield. This caused fixed income investors to pile into risky debt, and is now dropping yields further.
In the current market landscape, Treasury yields are starting to head higher. This, in turn, could cause a flight from riskier debt and back into more safe haven government debt.
In the meantime, the average yield on risky debt is starting to head lower.
“The average yield on U.S. junk bonds dropped below 4% for the first time ever as investors seeking a haven from ultra-low interest rates keep piling into an asset class historically known for its high yields,” a Bloomberg article noted. “The measure for the Bloomberg Barclays U.S. Corporate High-Yield index dipped to 3.96% on Monday evening, making it six straight sessions of declines.”
Day Traders Now Helping to Power Marijuana ETFs February 10, 2021
Cannabis sector-related exchange traded funds maintained their momentum on Wednesday as the Reddit crowd of day traders turned their attention to marijuana stocks.
Among the best performing non-leveraged ETFs of Wednesday, the
Meanwhile, shares of Tilray (NasdaqGS: TLRY) jumped another 38.5% and were on track for their best three-day gain ever. The company stock has surged over 500% since the start of the year.
The group of marijuana stocks are catching the eye of the same group of WallStreetBets Reddit traders that contributed to the short squeeze in GameStop (NYSE: GME) last month after several users expressed optimism over the stock’s outlook, CNBC reports.
Yahoo Finance: Tom Lydon Talks 2021 ETF Boom & Bitcoin ETF Prospects February 10, 2021
Joining the “ETF Report” with host Alexis Christoforous on Yahoo Finance, ETF Trends’ CEO, Tom Lydon, was on hand to talk all about the latest numbers for high performing ETF flows, the strength in emerging markets, in addition to some thoughts on a potential bitcoin ETF.
As far as 2021’s ETF performances so far, nothing has slowed down, according to Lydon. Six weeks in, there is already $90 billion in new flows, following a record $500 billion in 2020. And the money is going into popular themes, such as technology (EV, cybersecurity, etc.). It’s a movement away from traditional indexing.