The chart below tracks the delinquency rate on commercial and industrial loans from all commercial banks on a percent change from the prior year (blue line). It then compares that change to Bank of America/Merrill Lynch US High Yield spread (red line). The spread is simply the current yield minus the comparable yield for a safe investment, like U.S. Treasurys, that has a similar maturity. If the average maturity is five years on the ML HY Index, then the spread is that yield less the five-year Treasury yield.
See You At World’s Largest ETF Conference
By Mike Sciortino, Head of Distribution, CMG Capital Management Group
Once again, Inside ETFs, now the world’s largest ETF Conference, is the place to be for all the players in the $2 trillion ETF market. Again, CMG Capital Management Group will be a part of the ETF Strategist space sponsored by ishares/Blackrock. Come say hello to me or our CEO / investment strategist Steve Blumenthal, and several other members of the CMG Capital Management team.