“Analysts said demand is rebounding on signs of an improving U.S. economy, which lifted the Dow Jones Industrial Average to another all-time high on Wednesday,” McGee reports. “Moreover, the number of companies defaulting on debt is low, and firms have amassed healthy levels of cash on their balance sheets.”
Despite the recent inflows, there are still signs investors are worried about a potential correction in high-yield bond ETFs. For example, short bets against junk debt ETFs are at all-time highs. [Record Bets Against High-Yield Bond ETFs]
SPDR Barclays High Yield Bond
Full disclosure: Tom Lydon’s clients own HYG and JNK.