iShares BB Rated Corporate Bond ETF

HYBB

Market cap $281M

HYBB invests in BB-rated corporate bonds. It yields 6.1%, with moderate credit risk, below-average credit risk. Focusing on a single credit rating has interest implications at the portfolio level.

Credit spreads are expected to rise due to small-cap stock concerns about higher rates impacting leveraged companies. iShares BB Rated Corporate Bond ETF offers diversified exposure to BB-rated US corporate bonds. HYBB has a sector composition heavy on Consumer Cyclical bonds, potentially risky in a recession, but offers higher yields and diversification benefits.

The iShares BB Rated Corporate Bond ETF focuses on BB rated fixed income securities in the US corporate debt market. Credit spreads are too low given the risks to corporate debt from the uncertain economic situation and impending maturity walls.

Junk bonds offer higher risk for higher yield, but the overall junk bond market is too risky. HYBB is a unique ETF that holds BB-rated corporate bonds, offering more risk and yield. BB bonds have shown resiliency in turbulent times compared to its other junk-rated peers.

iShares BB Rated Corporate Bond ETF is a fixed income exchange traded fund. HYBB's holdings consist mostly of BB credits, with the largest sectoral allocation in consumer cyclicals. BB credits represent the first band of the high yield universe, and exhibit the lowest probabilities of default when compared to 'B' and 'CCC' names.