iShares launches euro high yield bond ETF

BlackRock’s exchange traded fund platform iShares has today announced launching what it says is the world’s first euro high yield bond ETF offering investors access to the European high yield debt market.

The iShares Markit iBoxx Euro High Yield fund offers exposure to nearly 100 of the most liquid sub-investment grade corporate bonds. It follows the Markit iBoxx Euro Liquid High Yield index, which determines inclusion based on average ratings given by Fitch, Standard & Poor’s, and Moody’s. Almost two-thirds of the constituent bonds are currently double B-rated with five per cent allocated to triple C-rated bonds. Consumer goods, industrials and basic materials constitute almost half of the index weighting, with no single holding currently making up more than two per cent of the index.