Peritus: No Bubble In Junk Bonds Despite Historically Low Yields

High yield indexes are seeing yields at all-time lows, but spreads over Treasuries are still historically normal, says Ron Heller, portfolio manager for the AdvisorShares Peritus High Yield ETF. Heller says strategists claiming there is a bubble in high yield debt are incorrect and are probably uncomfortable seeing yields around 5%. He says that energy issues currently compromise about 20% of his fund and he is still seeing supply coming onto the market - and then being quickly snapped up by yield-hungry Baby Boomers and pension fund managers.