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...Inflows into corporate bond funds have reached $22.8bn so far in 2024, according to fund tracker EPFR, the first positive start to a year since 2019, when $22.4bn had flowed in by this point....
...BlackRock will cap the fee on its $10.3bn iShares Broad USD High Yield Corporate Bond ETF at 8 basis points, the firm disclosed on Tuesday....
...governance and may potentially cause further detriment for long-term investors and the savers served by fund managers and pension funds....
...Investors poured record sums into high-yield bond exchange traded funds in November as investors rediscovered their appetite for risk....
...PIKs have always been at the risky end of the high yield spectrum, and MainFT has tended to strike a cautious tone around pretty much any firm that issues them, quoting one banker calling them a “Hail Mary...
...and transaction costs are high.”...
...It can yield impressive results. vanessa.houlder@ft.com...
.... — Bond indices are dumb; by weighting according to size it means a passive fund is tilted towards the most heavily-indebted countries and companies in the world. — Index funds don’t buy at issuance, which...
...So the all-in yields are still pretty high because the Fed rate is still pretty high. It’s at a 20-whatever-year high....
...High yield at a yield of 8 per cent looks even better… Credit spreads of 95 basis points in investment grade corporates and 325 bps on high yield are towards the tighter end of their long-term ranges, but...
...EFPR Global data indicates that net fixed income fund inflows have now crossed the $100bn mark — and, luckily for all bond managers, active flows are outpacing passive ones so far in 2024....
...Pension funds are piling into UK corporate bonds, encouraging some French and German companies to issue sterling debt for the first time....
...Is corporate credit too crowded? For a gestalt image, start with the Bank of America fund managers’ survey....
...A record $1.2bn has flowed in to European-listed exchange traded funds investing in the region’s high-yield bonds this year to Thursday, according to BlackRock data....
...The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR Bloomberg High Yield Bond ETF (JNK) bore the brunt, with outflows of $2.8bn and $1.6bn respectively, according to VettaFi’s data....
...Now, many funds prefer to buy corporate debt, which offers protection from interest rate moves without taking on leverage, as well as higher yields than government bonds....
...“We still really like high-yield corporates, but we also like BBB corporates,” Bianco said....
...Investment-grade borrowers posted a record January for bond sales, while high-yield or “junk” volumes reached a two-year high, as finance chiefs took advantage of a drop in yields to borrow at more attractive...
...The crowded corporate credit trade, part 2 Last week I looked at the boom in corporate credit and the accompanying tight credit spreads in high-yield and investment-grade bonds....
...That has also fuelled spread tightening across the board and increased the appeal of European bonds with relatively high yields....
...The volte-face was particularly notable in high-yield bonds, which saw year-to-date net outflows of $8bn as of October 27, but then took in $17.1bn in the remainder of 2023....
...However, the overwhelming bulk of the assets will be invested in an actively managed portfolio of bonds, much of it in relatively high-yielding bank loans, high-yield bonds and emerging markets debt, to...
...— had skipped to within inches of its all-time high....
...BlackRock has rolled out two actively managed equity exchange traded funds for European investors. The Ireland-domiciled iShares World Equity High Income and iShares U.S....
...More than half of BlackRock’s $10tn in assets under management are retirement savings, including institutional pension funds, corporate defined contribution plans known as 401(k)s and individual accounts...
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