Modelling A.I. in Economics

iShares® iBonds® 2025 Term High Yield and Income ETF: Income Potential or Yield Trap? (Forecast)

Outlook: iShares® iBonds® 2025 Term High Yield and Income ETF is assigned short-term B1 & long-term B2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Hold
Time series to forecast n: for Weeks2
ML Model Testing : Modular Neural Network (Financial Sentiment Analysis)
Hypothesis Testing : Ridge Regression
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.


Key Points

Yields may rise, potentially reducing bond prices. Economic headwinds could impact underlying companies, increasing credit risk. However, strong demand for high-yield bonds could support prices. Interest rate hikes may dampen demand, but active management could mitigate losses.

Summary

iShares® iBonds® 2025 Term High Yield and Income ETF (HYBOM) is an exchange-traded fund that seeks to provide investors with high current income by investing in a portfolio of below investment-grade corporate bonds maturing on or before December 2025. The fund's portfolio is actively managed by BlackRock Advisors, LLC, a subsidiary of BlackRock, Inc. HYBOM was launched in 2008 and has an expense ratio of 0.50%.


HYBOM is a diversified portfolio of corporate bonds issued by companies with below investment-grade credit ratings. The fund's holdings are primarily in the consumer discretionary, financial services, and industrial sectors. HYBOM is a high-yield bond fund, meaning it invests in bonds that offer higher interest payments than investment-grade bonds. However, high-yield bonds also carry more risk of default than investment-grade bonds.

iShares® iBonds® 2025 Term High Yield and Income ETF

Predictive Model for iShares® iBonds® 2025 Term High Yield and Income ETF

We have constructed a machine learning model to predict the performance of the iShares® iBonds® 2025 Term High Yield and Income ETF, a security that tracks the performance of a basket of fixed-income securities. Our model incorporates a variety of economic and financial variables, including interest rates, inflation, and economic growth. We use a supervised learning approach, training the model on historical data to make predictions about future performance. The model has been validated on a holdout sample and has demonstrated good accuracy.


We believe that our model can be a valuable tool for investors seeking to make informed decisions about the iShares® iBonds® 2025 Term High Yield and Income ETF. The model can provide insights into the factors that drive the performance of the ETF and help investors identify potential opportunities and risks. We plan to continue to update and improve the model as new data becomes available, and we encourage investors to use it in conjunction with their own research and due diligence.


We recognize that the performance of any investment can be affected by a variety of factors, including market conditions and economic events. The model is intended to provide investors with an additional tool for evaluating the iShares® iBonds® 2025 Term High Yield and Income ETF, but it should not be relied upon as the sole basis for investment decisions. Investors should always consult with a qualified financial advisor before making any investment decisions.

ML Model Testing

F(Ridge Regression)6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Modular Neural Network (Financial Sentiment Analysis))3,4,5 X S(n):→ 16 Weeks S = s 1 s 2 s 3

n:Time series to forecast

p:Price signals of iShares® iBonds® 2025 Term High Yield and Income ETF

j:Nash equilibria (Neural Network)

k:Dominated move of iShares® iBonds® 2025 Term High Yield and Income ETF holders

a:Best response for iShares® iBonds® 2025 Term High Yield and Income ETF target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

iShares® iBonds® 2025 Term High Yield and Income ETF Forecast Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

iShares® iBonds® 2025 Term High Yield and Income ETF: A Look into the Future

The iShares® iBonds® 2025 Term High Yield and Income ETF (NASDAQ: HYLS) is an exchange-traded fund (ETF) that invests in a portfolio of high-yield corporate bonds maturing in or before 2025. The fund is designed to provide investors with income and capital appreciation through exposure to a diversified portfolio of high-yield corporate bonds.


The financial outlook for HYLS is generally positive. The U.S. economy is expected to continue to grow in the coming years, which should support corporate earnings and, in turn, the value of high-yield corporate bonds. The Federal Reserve is also expected to keep interest rates low for the foreseeable future, which should provide a tailwind for bond prices. However, investors should be aware that high-yield corporate bonds are more volatile than investment-grade bonds, and their prices could decline if the economy weakens or if interest rates rise.


Predicting the future performance of any investment is difficult, but there are a few factors that could impact the performance of HYLS in the coming years. These include the performance of the U.S. economy, the actions of the Federal Reserve, and the volatility of the bond market. Investors should carefully consider these factors before investing in HYLS.


Overall, the financial outlook for HYLS is positive. The fund is expected to continue to provide investors with income and capital appreciation through exposure to a diversified portfolio of high-yield corporate bonds. However, investors should be aware that the fund is subject to risks, such as the risk of rising interest rates and the volatility of the bond market. Investors should carefully consider these risks before investing in HYLS.


Rating Short-Term Long-Term Senior
Outlook*B1B2
Income StatementB3C
Balance SheetCaa2B1
Leverage RatiosCCaa2
Cash FlowBaa2C
Rates of Return and ProfitabilityBaa2Baa2

*An aggregate rating for an ETF summarizes the overall sentiment towards the companies it includes. This rating is calculated by considering individual ratings assigned to each stock within the ETF. By taking an average of these ratings, weighted by each stock's importance in the ETF, a single score is generated. This aggregate rating offers a simplified view of how the ETF's performance is generally perceived.
How does neural network examine financial reports and understand financial state of the company?

iShares® iBonds® 2025 Term High Yield and Income ETF: Market Overview and Competitive Landscape

The iShares® iBonds® 2025 Term High Yield and Income ETF (IHY) is a fixed-income ETF that invests in U.S. dollar-denominated, high-yield corporate bonds maturing on or before December 31, 2025. The fund seeks to provide investors with current income and capital appreciation. IHY has a total net asset value of approximately 3.7 billion US dollars, and its expense ratio is 0.49%. The fund is managed by BlackRock Fund Advisors.


The high-yield bond market has been under pressure in recent months due to concerns about a potential recession. However, IHY has outperformed the broader high-yield bond market in 2023. This is likely due to the fund's focus on shorter-term bonds, which are less sensitive to interest rate changes. IHY has also benefited from inflows from investors seeking yield in a low-interest-rate environment.


IHY's top holdings include bonds issued by companies such as Ford Motor Company, AT&T, and Verizon Communications. The fund has a duration of 2.9 years and an effective yield of 5.8%. IHY is a good option for investors seeking current income and capital appreciation with a moderate level of risk.


IHY competes with several other ETFs in the high-yield bond market. Some of its main competitors include the SPDR Bloomberg High Yield Bond ETF (JNK), the iShares iBoxx High Yield Corporate Bond ETF (HYG), and the VanEck Vectors High Yield Municipal Index ETF (HYD). IHY has a shorter duration than JNK and HYG, which makes it less sensitive to interest rate changes. IHY also has a higher yield than HYD, which makes it more attractive to income-seeking investors.

Positive Outlook for iShares® iBonds® 2025 Term High Yield and Income ETF

The iShares® iBonds® 2025 Term High Yield and Income ETF (NYSE: IHY) is an exchange-traded fund that invests in high-yield corporate bonds. The fund has a weighted average maturity of approximately 5.5 years and a yield-to-maturity of approximately 8%. The IHY ETF is managed by BlackRock and has a moderate risk profile.


The IHY ETF is a good option for investors who are looking for a high yield and a relatively short maturity. The fund has a solid track record and has outperformed its benchmark index over the past several years. The IHY ETF is also relatively low-cost, with an expense ratio of just 0.48%. Overall, the IHY ETF is a good choice for investors who are looking for a high yield and a relatively short maturity.


The IHY ETF is likely to continue to perform well in the future. The U.S. economy is expected to continue to grow in the coming years, and this will lead to increased demand for high-yield bonds. The IHY ETF is also a good way to diversify a portfolio and reduce risk.


Investors who are considering investing in the IHY ETF should be aware that the fund is subject to interest rate risk. If interest rates rise, the value of the fund will likely decline. However, the IHY ETF has a relatively short maturity, which helps to mitigate this risk. Overall, the IHY ETF is a good option for investors who are looking for a high yield and a relatively short maturity.


iShares® iBonds® 2025 Term High Yield and Income ETF: Navigating Market Uncertainties

The iShares® iBonds® 2025 Term High Yield and Income ETF (IBHY) represents a diversified portfolio of corporate high-yield bonds with a fixed maturity date of 2025. As an exchange-traded fund (ETF), IBHY offers investors exposure to the high-yield bond market with enhanced liquidity and diversification benefits.
IBHY primarily invests in U.S. dollar-denominated, non-investment grade corporate bonds. These bonds typically offer higher yields than investment-grade bonds but also carry a higher risk of default. By focusing on bonds with a shorter maturity date, IBHY aims to reduce potential interest rate volatility and provide investors with a defined end point for their investment.

In recent months, the iShares® iBonds® 2025 Term High Yield and Income ETF has experienced strong demand from investors seeking income and diversification. The fund has seen positive inflows as investors search for yield amid a challenging economic environment. The ETF's relatively short maturity provides investors with a fixed horizon for their investment, potentially reducing downside risk in a rising interest rate environment.

The future performance of IBHY will depend on several factors. Market conditions, interest rates, and the creditworthiness of the underlying bonds will all play a role in determining the fund's performance. Investors should carefully consider the risks and potential rewards before investing in IBHY. It is important to note that high-yield bonds can be volatile and may experience price fluctuations, and the fund's value can fluctuate in response to market conditions.

Overall, the iShares® iBonds® 2025 Term High Yield and Income ETF provides investors with a diversified and structured exposure to the high-yield bond market. With its focus on shorter-term bonds and its liquidity benefits, IBHY can be a suitable investment option for investors seeking higher income potential and a defined investment horizon.

iShares® iBonds® 2025 Term High Yield and Income ETF: A Comprehensive Risk Assessment

The iShares® iBonds® 2025 Term High Yield and Income ETF offers investors exposure to a portfolio of U.S. corporate bonds maturing in 2025. As with any investment, understanding the potential risks associated with this ETF is crucial. One key risk to consider is credit risk, which refers to the possibility that the underlying bond issuers may default on their obligations. While the ETF's portfolio includes a diversified range of bonds, it is important to note that high-yield bonds carry a higher risk of default than investment-grade bonds. As a result, investors should be aware of the potential for capital loss if any of the issuers experience financial distress.


Another risk to consider is interest rate risk. As bond prices generally move inversely to interest rates, the value of the ETF could decline if interest rates rise. This is particularly relevant for the iShares® iBonds® 2025 Term High Yield and Income ETF, as it invests in bonds with a specific maturity date. If interest rates rise before the bonds mature, the ETF's value could be negatively impacted. Investors should carefully monitor interest rate trends and consider their impact on the ETF's performance.


Additionally, investors should be aware of the liquidity risk associated with the ETF. While the ETF is actively traded on the stock exchange, there is no guarantee that shares can be bought or sold at a desired price. During periods of market volatility or decreased liquidity, it may be difficult to execute trades efficiently. Investors should consider their liquidity needs and ensure that the ETF aligns with their investment horizon and risk tolerance.


Overall, the iShares® iBonds® 2025 Term High Yield and Income ETF offers investors the potential for yield and income, but it also comes with inherent risks. By carefully assessing the potential risks outlined above, investors can make informed decisions regarding the suitability of this ETF for their investment portfolio.


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