Big High-Yield Bond Inflows Add to Market’s Newly Found Momentum
- The $4.8 billion weekly cash add is biggest in about two years
- Recovery has restarted sales activity, which had been muted
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Investors have deposited more cash than they’ve withdrawn from US junk-bond funds after the Federal Reserve helped unleash a ferocious rally in the market.
Last month, the central bank signaled that it was willing to assess whether more tightening is actually needed after a few rounds of rate increases. That gave a significant boost to the high-yield market, as funds that invest in the asset class raked in $4.77 billion of cash for the week ended June 1, according to data from Refinitiv Lipper.