Seeking Outperformance? Try CCC-Rated Bonds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2024
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Source: NASDAQ.COM
- High Yield Bond Investing in April: Despite a tough month for high yield bond investing in April, bonds rated CCC are proving to be valuable investment choices.
- Performance of CCC-rated Bonds: CCC-rated bonds are outperforming the rest of the high yield market on year-to-date returns, with total returns of 1.3% in April.
- Opportunities for Investors: The ICE CCC US Cash Pay High Yield Constrained Index has an elevated yield close to 12%, providing opportunities for investors to capture high potential income.
- BondBloxx CCC-Rated USD High Yield Corporate Bond ETF (XCCC): This ETF offers access to benefits within CCC-rated bond investing and aims to produce similar results to the ICE CCC US Cash Pay High Yield Constrained Index.
- XCCC Fund Details: XCCC invests in bonds rated between CCC1 and CCC3, with issuer exposure capped at 2%. The fund uses a representative sampling indexing strategy and has seen significant investor interest with net flows of over $43 million in the last 12 months.
Analyst Views on XCCC
Wall Street analysts forecast XCCC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XCCC is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
