FLASH: Speculative-grade bond yields have retraced nearly all of Y 2018’s selloff
This action is the latest sign that investors have returned to the market with a after fleeing for safer asset classes at the end of Y 2018.
Here is how the market has been acting since 31 December, as follows;
- Investors have been shoveling cash into funds that buy high-yield debt, with data provider Lipper reporting an inflow of $3.86-B last week, the biggest since July 2016
- US junk bonds have had the best start to the year since Y 2009 and have been the best asset class in fixed income with YTD returns of 4.83 %
- The biggest gains have come in the riskiest part of the market, with triple-C rated notes returning 5.53%.
- The markets resilience augers well for equities going forward.
Remember, always take what the market gives.