But if junk bonds are too risky for your appetite, there are some proxy plays that have proved profitable in the past.
The beaten-down financials sector could get a big boost if risk appetite continues to grow. Already, the Select Sector Financial Index has rebounded nearly 5 percent this month as the HYG has climbed.
Financials are the best performing sector when the junk bond ETF is on the rise, followed by consumer discretionary, industrials and materials.
Asset managers should thrive in a risk-on environment. Ordinary investors are typically more willing to pay for active portfolio management and managers should make more on commissions on increased trades.
That's the logic. But some asset managers fare much better than others when high yield corporate debt is back in favor.
Historically, Principal Financial, Calamos Asset Management and Ameriprise Financial have seen the highest average returns over the last decade when HYG is rising 5 percent or more in one month.