No secret that HYG (high yield corporates) have been bid up forever as the world was thirsting for yield. HYG has belly-flopped as investors in that etf are now worried about corporate bond defaults in this space. These bonds are not of the AAA variety, but more junkish.
![](https://www.upsidetrader.com/wp-content/uploads/2023/12/hyg-2.png)
LQD, which consists of more investment-grade corporates was hit hard too but is rallying back today. It seems they are fleeing junk to buy less risky debt. LQD has rallied hard from the open.
![](https://www.upsidetrader.com/wp-content/uploads/2023/12/lqd.png)