10 Comments
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Will's avatar

Extremely informative article! You have been on fire lately with content.

David Cervantes's avatar

Thanks! Spread the word!

麦田Rye's avatar

Thank you! Very clear article. Also, David, do you think there is a possibility of spreads expanding recently? I went short on HYG and didn't make any money, just closed the position. I'm a bit disappointed. Haha.

David Cervantes's avatar

HYG is both credit and interest rate risk. Rates went up last 2 weeks.

麦田Rye's avatar

I got it. Thank you for your reply. Have a great weekend.

Paul_D's avatar

I got smacked around by microcaps in March. You know, the carefully screened ones that show a high degree of profitability. Shoulda known better than to buy that line.

David Cervantes's avatar

Sry to hear. It’s part of the tuition.

Neo Patel's avatar

Nice! Thanks. Staying away from IWM.