PowerShares Fundamental HiYld CorpBd ETF
Outflows in High-Yield Funds Fell, Yield on High-Yield Bonds Rose
Investor flows in high-yield bond funds were negative last week. According to Lipper, the net outflows from high-yield bond funds totaled $0.5 billion.
Why investors piled into junk bond funds
High market volatility usually increases risk perceptions for junk bonds (PHB). This increases spreads and yields. As a result, bond prices decrease.
Overview: High-yield bond markets since the Great Recession
High-yield, or junk-rated, bonds have higher yields than investment-grade bonds—like U.S. Treasuries and high-quality corporate debt. They’re issued by borrowers with higher credit risk—for example, with a lower ability to service the debt issued. Investors need a higher return to compensate for the higher risks involved.
Break prices confirming weakness in the bond high yield market
The price at which bonds are breaking for trading in the secondary market shows a clear downtrend year to date. The price at which bonds are placed with initial investors is given by the original issue discount (OID) and sets the bond’s yield to maturity. The break price, on the other hand, refers to the […]
High yield issuance continues to increase, spike likely unsustainable
The large high yield bond issuance was the second largest over the past two months and the highest in number of issuances Weekly issuance can help gauge both the demand and supply of the high yield bond market. New bonds increase the supply available to investors in the secondary market and the demand given indicates […]
Inflows Continued into High-Yield Bond Funds, Yields Fell Sharply
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.
Must know: Why junk bond funds are in vogue again
Secondary market activity in high yield debt mutual funds High yield debt (HYG) mutual funds recorded their second consecutive weekly inflow. Net flows into junk bond (JNK) funds came in at ~$1.6 billion in the week ending October 31. Net flows into high yield bond (PHB) mutual funds are down by ~$2.3 billion so far […]
High-Yield Bonds Are Turning Out to Be the Real Winners
High-yield bonds gained popularity due to higher yields compared to Treasury bonds, whose yields were being pushed down by the Fed’s interest rate policy.
High yield bonds, the pain continues and will only get worse
The fund flows for last week once again plummeted as investors remove cash from bonds ahead of the FOMC meeting. Fund flows are key in determining the sentiment of investors towards a given asset class. Weekly fund flows measure how much cash investors put into and remove from mutual funds focused on investing in high […]
High yield fund flows stumble, demand side may be getting weak
High yield bond flows for last week posted the first outflow in five weeks, possibly signaling weak investor confidence Fund flows are the best indicator of investor demand in the high yield bond market. Naturally, an increase in investor demand is reflected in increased bond prices and lower yields. When demand falters, issuance is diminished […]
High yield debt issuance resurges in the primary market
New issue volumes for high yield debt rose 13.3% week-over-week to $6.8 billion across nine issues in the week ending October 31. Issuance had come in at $6 billion across 12 deals in the week ended October 24.
How high-yield bond markets react to higher market volatility
High-yield debt mutual funds recorded a net outflow of ~$0.5 billion in the week ending October 17, reversing the previous week’s trend with net inflows of $1.3 billion.
Downside potential in September for high-yield bonds
The high yield market had what may have been its last strong week of the year The issuance volume for last week was a continuation of the strong issuance seen throughout July. It would be unusual, though, for this trend to continue into August. Volumes continue steady, flows rebound A total of 19 deals priced […]
Will Fallen Angel Bonds Continue to Capture Solid Returns?
VanEck How fallen angels may complement high yield portfolios Income investors may want to consider fallen angels as a complement to their high yield bond allocations given their higher credit quality. Fallen angels’ higher average credit quality than original-issue high yield bonds may help absorb more of the potential broader market volatility that may occur […]
How High-Yield Bonds Are Connected to Other Asset Classes
AB Looks Are Deceiving But even though high-yield bonds look like other bonds, they don’t necessarily act like other bonds. This insight can have important implications for how investors consider them in an overall portfolio context. High-yield performance patterns, for example, don’t track those of other fixed-income sectors very closely over the long term. Looking […]
Why High Yield Bonds Are Attractive
In this series, we’ll discuss the many advantages of high yield bonds, their correlation with other asset classes, the rise of global high yield markets, and why high yield bonds should command a place in a portfolio.
Why Richard Bernstein Sees Risk in ‘Safe’ Investments
Richard Bernstein believes that investors’ flocking to fixed-income products and shunning equities has increased their risk.
Why Is ‘Carry’ Compressed in Financial Markets?
In his investment outlook for June 2016, Bill Gross asserted that “carry” is compressed in nearly every form. It has more risk than return.
October Saw Generous Inflows for High-Yield Bond Funds
According to Lipper, net inflows for high-yield bond funds totaled $7.6 billion through October 28, compared to outflows totaling $1.9 billion in September.