High Yield Bonds : More defensive in the event of a correction in equities (AHYE) – 28/06/17

We integrate the ETF Amundi AHYE (high yield bonds) that allows an exposure to the 30 most liquid non-financial stocks with an average rating (sub-investment grade), on the corporate bond market  in a single transaction. These 30 Stocks are mainly European (c. 80% of which c.20% for France), while the remaining 20% are split between North America and Asia.
  • AHYE looks attractive in the current context, due to a very strong positive trend (Short Term: 90%, Long Term: 100%), and is also a much more defensive allocation than equities in a context of traditional correction (by opposition to a genuine financial crisis or a proven bear market)

AHYE charts, weekly data :

 
  • This ETF is to be monitored from a spread perspective with the STOXX (positive in the short term), both as a risk appetite indicator (currently down), but also from a capital preservation perspective. In the case of a classic market correction (5%), this ETF is expected to be more resilient than equity indexes or even to increase slightly further.

Spread AHYE/SXXR (Stoxx600 Net Return) : daily data