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Traders Plow Record Cash Into Junk Bond ETF as Tone Improves

  • High-yield bond ETF has received most-ever inflows over 6 days
  • HCA Holdings boosts high-yield debt offering to $1.5 billion
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Investors are sinking cash back into the largest junk-bond exchange-traded fund signaling that the rout in the market for risky corporate debt may be overdone.

BlackRock’s iShares iBoxx High Yield Corporate Bond exchange-traded fund absorbed a record $1.5 billion over the last six days, according to data compiled by Bloomberg, a sign that sentiment among credit investors is improving as crude rebounds from a 12-year low. The flows mark a reversal from the start of the year, when a similar amount was pulled from the ETF as the Standard & Poor’s 500 Index plunged more than 10 percent.