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Investors quickly pour $1B into junk-bond ETFs

Jul. 15, 2015 1:38 PM ETHIX, PHT, VLT, JQC, DHG, PCF, JFR, HYG, JNK, PHF, CIK, EAD, FHY, HYLD, DHY, NHS, SJB, ACP, CIF, DSU, HYT, MCI, MHY, MPV, UJB, SPHY, ANGL, QLTC, ARDC, HYLS, AIF, KIO, GGM-OLD, RABy: Stephen Alpher, SA News Editor5 Comments
  • Both iShares' HYG and State Street's JNK saw their largest daily inflows on record this week, according to Bloomberg. This comes after nearly $4B in withdrawals over roughly the preceding year. Blame China and Greece, at least indirectly.
  • I’d bet it’s more technical,” say Goldman's Charles Himmelberg. “I bet there are enough fund managers who use it as a tool to make sure they’re tracking their benchmarks.”
  • In other words, with high-yield bond sales rare of late (partly thanks to global market jitters, courtesy of China and Greece), investors needing to get exposure to the paper turn to ETFs.
  • So more global jitters could lead to more inflows, or relative calm cold lead to a quick reversal for that $1B.
  • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, MCI, VLT, KIO, ARDC, CIF, MHY, AIF, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC

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