A Bond Market Collapse Is Imminent As Junk-bond ETF Short-interes
Desperate for Returns, Investors Pour Into Junk
The money manager’s job is supposed to be straightforward: Take people’s cash and put it to work. The more money that comes in, the bigger the manager’s paycheck.
So why would two of the country’s largest fund managers tell would-be investors in junk bonds—the common name for bonds issued by companies with the lowest credit ratings—to go away?
The short answer is that it’s for their own good. The market for junk bonds, the pros say, has become so popular that it’s dangerous.