iShares has launched the first ETF providing liquid exposure to the European high yield debt market.
The iShares Markit iBoxx Euro High Yield fund is a diversified vehicle, tracking nearly 100 of the most liquid, sub-investment grade corporate bonds.
The underlying Markit iBoxx Euro Liquid High Yield index uses multiple pricing sources and is based on an average of the ratings assigned to each debt instrument, by Fitch, Standard & Poor's and Moody's, to determine which bonds are included.
Around two-thirds of the bonds in the index are BB-rated, with 5% allocated to CCC-rated bonds.
Almost half of the index weighting comprises consumer goods, industrials and basic materials, while no single holding currently constitutes more than 2% of the benchmark.
BlackRock fixed income strategist Blanca Koenig says: "Investor appetite for European high yield exposure has developed in recent years, and iShares is pleased to offer clients exposure to a sector that has traditionally been hard to access."
iShares now has 437 ETFs globally, across equities, fixed income and commodities, trading on 19 exchanges worldwide.
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards