Trade of the Week: High Yield Bonds

Trade of the Week

Bond prices have rallied lately with the expectations that interest rates won’t go quite as high as originally expected. (Bond prices move opposite of yields.)  This includes government bonds, corporate bonds, and high yield bonds as well. A very large bullish call spread in iShares iBoxx $ High Yield Corporate Bond ETF (HYG) suggests there is still room for high yield bonds to climb prior to February options expiration.