JNK: Credit Spreads Shouldn't Continue To Fall

State Street SPDR Bloomberg High Yield Bond ETF (JNK) faces unattractive risk/reward due to rising reinflation risks and irrationally tight credit spreads. JNK's sector exposure is heavily cyclical, with significant vulnerability to macro headwinds, consumer sentiment deterioration, and geopolitical risks like the Iran conflict. The precedent of rate hikes when there's a supply crisis is a risk, as it comes at the expense of JNK both in higher benchmark rates and ignored growth mandates.