Junk funds have been investors darling in the past two months due to their strong performance, and they attracted $555.2 million last week, their eighth straight week of inflows, Reuters reports.
The inflow has mounted to a total of $8.4 billion in net flows since mid-February, and more than $12 billion year to date, according to
While the average bond fund has posted gains of just under 2% this year, the average junk bond yield is 10.13%, down from 11.91% at the beginning of this year but still ranking it the best U.S. bond asset class, according to
Whats fueling the new interest in junk bonds is a decrease in default rates, Reuters reports.
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