“Thanks to inflows in the week ended June 13, JNK now has a 7% outflow over the past four weeks instead of 13%, and HYG has lost 5% instead of 6%,” according to the report.
The spread on high-yield bonds relative to comparable government debt is nearly 7 percentage points.
“About $17.5 billion of investor money has flowed into junk-bond funds and ETFs this year, a pace that, if it were continued, could set a record for inflows across the full year despite recent outflows. The year to beat is 2009, which year to date had $29.9 billion of inflows,” Dow Jones reported.
SPDR Barclays Capital High Yield Bond ETF
Full disclosure: Tom Lydon’s clients own HYG.