ETF Investors Are Switching Credit Risk for Interest-Rate Danger
- Largest junk funds see outflows, while high grade adds cash
- BlackRock’s LQD has twice the duration of high-yield HYG, JNK
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Corporate bond traders are playing hot potato with risk.
Nearly a billion dollars fled the two largest ETFs tracking high-yield bonds last week, the biggest outflows since June, as investors re-assess how much credit risk they’re willing to stomach.