This high-yield bond fund just hit a sweet spot, but timing matters
SPDR Bloomberg High Yield Bond ETF (JNK): 6.4% yield masks credit concentration with 11% in CCC-rated distressed bonds. JNK’s energy weighting of 12.68% creates vulnerability to oil price swings that strain bond values. The sustainability of the fund depends on low default rates; a recession or credit crunch would put direct pressure on distributions. The…