Loading news...
BDC sector offers a great moment to put your inner contrarian to test by scooping up high-quality compounders when everyone else is selling. The discounts have fallen into 20%+ zone, and the average yield level in the sector has risen to almost 13%. These metrics look too good to be true.
Kayne Anderson BDC and Trinity Capital offer 11%+ yields with minimal SaaS exposure, making them attractive amid sector-wide SaaS-driven BDC selloffs. KBDC's SaaS portfolio exposure is under 3%, and TRIN's is 10.3%, both well below sector averages, limiting their risk from SaaS credit events. Both BDCs demonstrate superior credit quality, with non-accruals at 1.4% (KBDC) and 1% (TRIN), and PIK income far below sector averages.
The latest 13F filings from BlackRock, the world's largest asset manager, are offering investors a fresh look at how the firm positioned its portfolio as of Q4 2025.
The market is signaling distress for BDCs, but the data tells a very different story. Dividend cuts for BDCs aren't what most investors think they are. Rare, well-covered double-digit yields trading at huge discounts to NAV are quietly flashing opportunity signals.
iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Stock traders acquired 791,361 put options on the company. This represents an increase of 57% compared to the typical daily volume of 504,511 put options. Hedge Funds Weigh In On iShares
NPFI: Low-Volatility Preferred ETF
2 Attractively Discounted Funds With Monthly Pay
A few scary headlines have investors running, but the data tells a very different story. Deep discounts are opening up where fundamentals remain unusually strong. This misunderstood corner of the market may offer rare income upside.
Cullen Frost Bankers Inc. grew its position in iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) by 24.6% in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 173,255 shares of the exchange traded fund's stock after buying an additional 34,225
Investors are currently adopting a more conservative stance, favoring high-quality value and durable income. However, this rotation coupled with lower interest rates echoes a bit 2022's system-wide yield compression (when high-quality income was overcrowded due to a desparate search-for-yield activity). So, finding double digit dividends that are backed by strong fundamentals has become more difficult.
The market is pricing in a crisis that the data simply does not show. A misunderstood corner of credit is flashing rare value signals. The disconnect between headlines and fundamentals is growing fast.
Todd Rosenbluth, head of research at VettaFi, joined host Nate Geraci this week on ETF Prime to preview five key ETF stories to watch in 2026 following a record year that saw nearly $1.5 trillion in net inflows.
It will be hard to top 2025 for the ETF industry following a record $1.49 trillion of net inflows. But a year doesn't need to break records to be remarkable.
BDC net investment income levels are declining as the Fed lowers rates. Despite lower base rates, I see no reason to rotate out of the BDC sector. In the article I detail how BDCs have outperformed the S&P 500 and high yield credit even in prolonged low-rate environments.
iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Stock investors bought 711,759 put options on the stock. This represents an increase of 40% compared to the average volume of 509,086 put options. Institutional Trading of iShares iBoxx $ High
Dearborn Partners LLC acquired a new position in shares of iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) in the undefined quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 9,426 shares of the exchange traded fund's stock, valued at approximately $760,000. Other hedge funds
My portfolio goal is sustainable, stress-free income—prioritizing safety over chasing high yields. Even though it might be very tempting, tilting investments towards 10%+ yields is not the smartest thing to do. The historical stock market annual return figure is around 10%, which is very difficult to meet for income investors, who are usually concentrated into fixed income factor (lower return potential).
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) offers steady carry with limited volatility, tracking the Markit iBoxx USD Liquid High Yield Index. About half the portfolio is pro-cyclical, making HYG sensitive to economic cycles but offering reliable income with 17 years of consecutive dividends. Current macro conditions—narrowing credit spreads, resilient economy, and anticipated rate cuts—support a medium-term outlook for capital gains plus carry.
Yield for traditional income sources have started to compress. For income-oriented investors, who seek to build a reliable passive income machine it causes a real headache. To hit a certain target income figure, investors have to assume either higher risks, extend time horizon or save/invest more capital.
The theme of Don Kaufman's (@Theotrade) Big 3 revolves around what he considers shaky all-time highs. He explains how "financial plumbing issues" will create a flush in Goldman Sachs (GS) and the iShares iBoxx High Yield Corporate Bond ETF (HYG), and how Amazon (AMZN) ran too high on A.I.