Let’s look at the high yield bond markets. Junk bond issuers stayed away from the primary market for three successive weeks in December due to holidays.
Investor flows into high-yield bond funds were negative last week. According to Lipper, net outflows from high-yield bond funds totaled $562 million in the week ended May 25, 2016.
Investor flows into high yield bond funds were negative last week for the second consecutive week. Net outflows from high yield bond funds totaled $1.9 billion.
The sharp decline in crude oil prices led to defaults among high-yield bond issuers from the energy sector. Exposure to the bonds hurt funds that invest in them.
Investor flows into high-yield bond funds were positive for the fifth week. Net inflows into high-yield bond funds totaled $1.7 billion in the week ending March 16.
Iran’s oil minister Bijan Namdar Zangeneh is of the opinion that the agreement between OPEC and non-OPEC members to freeze oil production is “ridiculous.”
Three US equity indexes—the S&P 500, the Dow Jones Industrial Average, and the NASDAQ—fell from January 12 to January 19 as the oil price rout continued.
Let’s see why US stock indexes fell. The three US equity indexes that we review in this December recap series fell from November 30 to December 31, 2015.
Among the US stock indices we review in this weekly series, two US equity indices rose while one equity index fell between December 23 to December 30, 2015.
High-yield bond issuance fell to zero last week due to two main reasons. Junk bond issuers stayed away from the primary market due to fears of default risk.
Investor flows in high-yield bond funds were negative in the week ending December 11. Net outflows from these funds totaled approximately $3.5 billion.
Things look fine for now Previously in this series, we discussed how mutual funds have a notably larger holding of corporate bonds at present than they had before the financial crisis of 2008. We’ve also talked about how regulatory changes could impact the role of banks as market makers. At the same time, the role […]
With regard to US monetary policy, there’s been a lot of emphasis on the timing of the first increase in the federal funds rate. The path of the funds rate is more important than the first increase.