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Analysis: High-Yield Bond ETFs Risk Assessment English 한국어 Welcome. Today, we will analyze an article from ETF Trends discussing whether high-yield bond ETFs have become too risky following a significant market rally. The report highlights growing concerns in the speculative-grade corporate bond market. After attracting massive inflows from investors desperate for yield, these high-yield, or junk bond, ETFs are beginning to show signs of weakness and are currently testing their critical short-term moving averages. A major point of concern raised by Moody's is the deterioration of covenant quality. Covenant quality has fallen to an all-time low, meaning the protections normally afforded to lenders are increasingly weak. Despite taking on this elevated structural risk, investors are not being compensated with higher returns. In fact, due to overwhelming demand and record issuance, the yield spreads over benchmark rates have narrowed ...