High-yield corporate bond ETFs are rebounding following their June swoon as some income investors think it’s safe to go back in the water.
Junk bonds are enjoying their biggest gain in about a year and a half, Bloomberg News reports.
The largest junk bond ETFs, iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG) and SPDR Barclays High Yield Bond (NYSEArca: JNK), have seen hundreds of millions of inflows so far this month. [Investors Jumping Back Into Junk Bond ETFs]
“Yields became attractive enough that people started to come back into the market,” said Marc Gross, a money manager at RS Investments, in the Bloomberg story. “It’s been a pretty impressive rally.”
Junk bond yields are falling after spiking in June.