Corporate bonds, while holding up in the bond scuffle, have experienced heavy outflows. The iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD) saw $8.5 billion in outflows year-to-date. [Corporate Bond ETFs Steady as Issuance Soars]
UBS AG and Citigroup Inc. analysts. JPMorgan Chase & Co. analysts predict that investment-grade bonds will likely continue to decline in 2014.
Non-traditional bond funds, on the other hand, have attracted $48 billion over the first 10 months of the year. Funds that hold bank loans, which track floating-rate bonds that adjust to rising interest rates, gathered $57.7 billion in assets. The PowerShares Senior Loan Portfolio (NYSEArca: BKLN) has attracted an impressive $4.8 billion so far this year. [Bank Loan ETFs Continue to Thrive]
“There is a suggestion that the managers of these funds will outfox the rising rate environment,” Eric Jacobson, a Morningstar analyst, said in the article.
For more information on bonds, visit our bond ETFs category.
Max Chen contributed to this article.