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.

Stay tuned…

  #asset, #bonds, #classes, #equities, #high, #income, #investors, #junk, #market, #risk, #stocks, #yield

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