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.