- In the wake of ECB's QE launch, more than €1B moved into European high-yield bond funds for the week ended Jan. 28. It's the largest weekly amount since JPMorgan began tracking the numbers in 2011 and stands against median inflows of €95M over the past four years.
- European high-yield bonds have an average yield of 4.2%, according to Markit, compared with 1.2% for investment-grade paper.
- “The global search for yield should prompt some investors to move down the credit quality spectrum into the noninvestment-grade market,” says one portfolio manager, summing up the conventional wisdom.
- ETFs: IHY, GHYG, PGHY, HYXU, PICB, IBND, CRDT, IJNK, SUBD