- Mutual and ETFs (LQD) focused on investment grade corporate debt reported $639M of net inflows last week, the largest gain in over 2 months, according to BAML. In the 10 weeks previous, investors had pulled a net $8.3B out of these fixed-income funds. High yield funds (HYG, JNK) attracted $566M last week.
- The move comes has the IG yield spread to Treasurys has slipped 19 bps since hitting a 9-month high of 172 in late June.
- "There are signs of life," says one fund manager. "People are expecting tapering and are getting out of Treasurys" and into higher yielding assets.
- Other IG bond ETFs: CBND, CORP, FLTR, FLRN, ITR, LWC, SCPB, VCIT, VCLT, VCSH, IGU, IGS, CSJ, QLTA, QLTB, BSCI, BSCJ, BSCK, BSCL, BSCM.
- Other high-yield ETFs: PHB, HYLD, HYS, SJB, UJB, SJNK, ANGL, BSJG, BSJH, BSJI, QLTC, XOVR.
Money flows back into corporate debt
Aug 12 2013, 09:35 ET