Re: Friday Was A Shorting Opportunity
What exactly do you think you are showing with this chart? You criticize others on this board for posting opinions without support, but then you post charts without stating your conclusion from said charts as if it is obvious. First of all, the correlation between high yield and interest rates (5 yr Treasuries) is very low, except for mid-to-high BBs that have relatively lower credit risk. Low Bs and CCCs often have almost no correlation to interest rates. The High Yield ETF to 5yr Treasury chart you keep posting is illustrating the recent sell-off in energy and commodity issuers which are disproportionally represented in the high yield index. It also reflects a broader-based sell-off in high yield as retail investors sell HY ETFs and mutual funds. Are you implying that energy sector defaults will spread to the rest of the economy?