ANGL

Coming into COVID-19, a chunk of client bond money was in higher yielding money markets since credit spreads (in my opinion) offered little value prior to March 2020.After the 35% correction in the S&P 500, and upon the announcement of the Fed liquidity programs, all that money was moved into corporate credit risk (a tactical bet) given the spread widening that happened.Can't recall the source, but Value is on track to outperform Growth for the month, for the first time in years. The question is, "is this sustainable or is it the proverbial dead-cat bounce?"

In U.S. high yield bonds we find the riskiest of credits.I have some concerns about municipal bonds and am particularly concerned about municipal pension bonds.Our 'Borrower's Paradise' is also good news for many leveraged ETFs and closed-end funds.

The best high-yield bond ETFs for Q4 2020 are FALN, ANGL, and FDHY.

Despite equity and bond markets' continual rise, I am reluctant to go long high yield credit right now, with the exception of fallen angels.Fallen angels have outperformed the high yield corporate bond market, in the short-term and over the longer term.Yield spreads have narrowed considerably over the past few months. Therefore, total return potential is probably limited from here.

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