Junk companies etf?

[scorpioncapital]

Is there an index or etf of over leveraged bad businesses one can buy (or perhaps short). Or even a junk bond fund ?

 

[given2invest]

Is there an index or etf of over leveraged bad businesses one can buy (or perhaps short). Or even a junk bond fund ?

 

HYG is the junk bond fund ETF.  I would not short that as on Friday the Fed literally said they were going to start buying it.  Crazy times we live in.

[Cigarbutt]

Yes HYG is interesting.

I had built a position in WYDE (the mirror image of HYG) but WYDE was liquidated last August because of insufficient investor interest. :(

The last time I checked, high yield oil and gas made 11% of HYG.

But then again, it looks like banks are getting ready to take over the oil and gas industry and the Fed set up an SPV (this is not a joke) funded by the Treasury (this is not a joke) that will buy everything that looks distressed.

How do you deal with that?

It is the best of times, it is the worst of times.

[scorpioncapital]

So this HYG is supposed to go down over time to zero? Or is it structured to go up when companies stocks do badly?

 

It actually says "Shares iBoxx $ High Yid Corp Bond"

 

so I guess this is junk bonds etf. I was thinking the same thing but for the equity portion.

 

I'm actually looking for something that will do badly, as a hedge. But maybe this is the wrong way to do it.

[Kaegi2011]

I think it's worth warranting that the Fed is willing to buy sub-IG bonds only if the issuer was still IG as of 3/24/2020.  E.g., Ford falls into that camp, but not a lot of other large names do (e.g., KHC). 

[scorpioncapital]

Does anyone know an inverse etf of poor quality stocks, or at least ones with very high capex requirements and very commodified stocks?

[rb]

XOP