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 AMG Data Services of Arcata, California.

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 Merrill Lynch. The Standard & Poor’s 500 stock index is also up less than 2%.

What’s fueling the new interest in junk bonds is a decrease in default rates, Reuters reports.

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The staff of Mutual Fund Market News ("MFMN") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MFMN, and have not prepared, sponsored, endorsed, or approved these summaries.

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