Investors Pump Cash Into Junk Bond Funds as Issuance Spikes

  • High-yield retail funds see an inflow of $3.1 billion: Lipper
  • New bond offerings surged on expectations for a Fed rate cut
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Funds that invest in high-yield corporate debt saw the pace of inflows accelerate this week as the Federal Reserve’s dovish tilt spurred new bond sales.

Investors injected $3.1 billion into retail funds in the weekly reporting period ended June 26, according to dataBloomberg Terminal from Refinitiv’s Lipper, a sharp rise from the $602 million added last weekBloomberg Terminal. This week’s inflow is the largest since February.