Investing

Billions Flood Into Bond ETFs Even as Default Warnings Pile Up

  • LQD has absorbed $3.3 billion in net inflow since Sept. 27
  • Moody’s, Citigroup have raised default forecasts this week
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Exchange-traded fund investors are buying the dip in bonds despite high-profile warnings of corporate pain to come.

More than $3.3 billion has flowed into the $32 billion iShares iBoxx $ Investment Grade Corporate Bond ETF (ticker LQD) since Sept. 27, a stretch that included the fund’s biggest one-day inflow since March 2020, Bloomberg data show.