For the life of me, can anyone educate me as to why the $HYG ETF has been rising expeditiously for the past 3 days?
Fed has not said anything about buying sub-investment grade debt, liquidity covenants from lack of company cash flows that comprise the ETF are bound to be broken, and bonds are even starting to get downgraded. Yet, this thing keeps going up! Hypothetically, all of these factors will either cause bonds to default or at least push interest rates up and lower the overall bond prices.
Am I missing something? No one can even spend money right now?