Junk bond yields vs. other bonds

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tomsense76
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Junk bond yields vs. other bonds

Post by tomsense76 »

Currently JNK, the SPDR Bloomberg Barclays High Yield Bond ETF, is yielding just below 1%. However BND, Vanguard Total Bond Market Index Fund ETF, is yielding more than 2%. Also VGIT, Vanguard Intermediate-Term Treasury Index Fund ETF, is yielding ~1.5%. Am trying to wrap my head around why junk bond yields are so low compared to other bond yields, which have gone up in recent months. What am I missing here?
"Anyone who claims to understand quantum theory is either lying or crazy" -- Richard Feynman
MrJedi
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Re: Junk bond yields vs. other bonds

Post by MrJedi »

Can you explain how you are getting your numbers?
Angst
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Re: Junk bond yields vs. other bonds

Post by Angst »

Presumably, you're looking at something other than the 30-day SEC yield. This fund ought to be yielding over 3%.
tibbitts
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Re: Junk bond yields vs. other bonds

Post by tibbitts »

tomsense76 wrote: Thu Apr 08, 2021 1:22 pm Currently JNK, the SPDR Bloomberg Barclays High Yield Bond ETF, is yielding just below 1%. However BND, Vanguard Total Bond Market Index Fund ETF, is yielding more than 2%. Also VGIT, Vanguard Intermediate-Term Treasury Index Fund ETF, is yielding ~1.5%. Am trying to wrap my head around why junk bond yields are so low compared to other bond yields, which have gone up in recent months. What am I missing here?
I don't know but I'd guess all your yield numbers are wrong.
GoneOnTilt
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Re: Junk bond yields vs. other bonds

Post by GoneOnTilt »

tomsense76 wrote: Thu Apr 08, 2021 1:22 pm Currently JNK, the SPDR Bloomberg Barclays High Yield Bond ETF, is yielding just below 1%. However BND, Vanguard Total Bond Market Index Fund ETF, is yielding more than 2%. Also VGIT, Vanguard Intermediate-Term Treasury Index Fund ETF, is yielding ~1.5%. Am trying to wrap my head around why junk bond yields are so low compared to other bond yields, which have gone up in recent months. What am I missing here?
The 30-day SEC yield for JNK is 3.95%.
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watchnerd
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Re: Junk bond yields vs. other bonds

Post by watchnerd »

tomsense76 wrote: Thu Apr 08, 2021 1:22 pm Currently JNK, the SPDR Bloomberg Barclays High Yield Bond ETF, is yielding just below 1%. However BND, Vanguard Total Bond Market Index Fund ETF, is yielding more than 2%. Also VGIT, Vanguard Intermediate-Term Treasury Index Fund ETF, is yielding ~1.5%. Am trying to wrap my head around why junk bond yields are so low compared to other bond yields, which have gone up in recent months. What am I missing here?
I don't know where you're getting 1% yield from:

https://www.ssga.com/us/en/intermediary ... -MQAvD_BwE
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Topic Author
tomsense76
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Joined: Wed Oct 14, 2020 1:52 am

Re: Junk bond yields vs. other bonds

Post by tomsense76 »

Yep sorry for the noise I think I misread :oops:
"Anyone who claims to understand quantum theory is either lying or crazy" -- Richard Feynman
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