Who’s Afraid of the Fed? Not Investors in Junk Bond ETFs

Inflows into junk-bond exchange-traded funds surged last month, outpacing investment-grade for the first time in 2016. The flip occurred as the Federal Reserve voted to raise interest rates, threatening the value of the underlying debt. Investors’ sudden fondness for high-yield securities likely stems from the market’s increased tolerance for risk since the election of Donald Trump, said Eric Balchunas, an ETF analyst for Bloomberg Intelligence. “There’s a new variable in town and it’s massive.”

Read more

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s