Junk Bonds Rally
Plunge in Yields on Government Debt Fuels Resurgence
Junk bonds have bounced back after their steepest decline in more than a year as investors once again push aside concerns about overheated prices in pursuit of higher-yielding investments.
Portfolio managers are snapping up speculative-grade debt after a selloff that last week took the yield of a major index above 5% for the first time since the “taper tantrum” of mid-2013. Yields rise when prices fall
Have performance chasing individual investors been selling while professional investors have been buying ? The article notes:
Some $19.2 billion has been withdrawn from U.S.-based high-yield bond funds and exchange-traded funds, according to fund tracker Lipper. The record annual outflow was $7.1 billion in 2005.
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