ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

JNK SPDR Bloomberg High Yield Bond ETF

94.15
-0.38 (-0.40%)
15 Jun 2024 - Closed
Delayed by 15 minutes
Name Symbol Market Type
SPDR Bloomberg High Yield Bond ETF AMEX:JNK AMEX Exchange Traded Fund
  Price Change % Change Price High Price Low Price Open Price Traded Last Trade
  -0.38 -0.40% 94.15 94.335 94.06 94.20 3,413,443 00:44:34

Junk-Bond ETF Shrinks By 6.5% On Record Outflow

18/05/2012 12:53am

Dow Jones News


SPDR Bloomberg High Yiel... (AMEX:JNK)
Historical Stock Chart


From Jun 2019 to Jun 2024

Click Here for more SPDR Bloomberg High Yiel... Charts.

One of the largest U.S. exchange-traded funds for junk bonds saw its securities holdings fall by a record $869 million, or $6.5%, in the week ended Wednesday, after an investor reportedly redeemed shares in the fund in exchange for bonds, according to data provider Lipper.

The $778 million withdrawal from the $12 billion ETF--the SPDR Barclays Capital High Yield Bond ETF (JNK), run by State Street Global Advisors, the asset management business of State Street Corp. (STT)--was more than twice the previous record outflow of $392 million, recorded April 11, Lipper added.

The remaining shrinkage in the fund may have been due to its performance.

The fund holds junk bonds issued by Clear Channel Communications, Ally Financial, Sprint Nextel (S) and others.

Analysts at independent research firm CreditSights said in a note that the redemption in question occurred May 8. They said the market participant behind the move likely sought to create a desired portfolio of junk bonds as a result of the maneuver with the ETF provider, exchanging its units for the fund's bonds.

One junk-bond specialist speculated that the firm may have tried to capture the premium or "spread" between the value of its existing holdings and the value of bonds implied by its shares in the ETF.

The CreditSights analysts said markets "are abuzz" with the trade and what it means for the ETF market, and other investors in such funds.

"Widely reported comments by a member of a firm that brokered the trade indicated that an investor assembled a position in the ETF with the intent of exchanging the shares for the underlying bonds as a means to implement a cash-bond portfolio," the analysts wrote.

The firm behind the trade could not be learned, but only certain companies can trade directly with ETFs. Those are called "approved participants," and these are generally market makers in ETFs, said CreditSights.

-By Katy Burne, Dow Jones Newswires; 212-416-3084; katy.burne@dowjones.com

1 Year SPDR Bloomberg High Yiel... Chart

1 Year SPDR Bloomberg High Yiel... Chart

1 Month SPDR Bloomberg High Yiel... Chart

1 Month SPDR Bloomberg High Yiel... Chart

Your Recent History