Junk bonds' strong rebound stimulates the junk bond fund sector, which brought in $1.1 billion in the week ended April 30, according to AMG Data Services. That marks the 10th week in a row of net inflows, Reuters reports. A declining default rate has helped junk bonds' rally since last October. Total inflows into the junk bond mutual fund sector this year has amounted to almost $14.7 billion.
Total returns on junk bonds, including interest and price gains, have reached 13.7% this year, according to Merrill Lynch. In comparison, Treasuries have gained 1.5%, investment-grade corporate bonds 4.6%, and the Dow Jones Industrial Average 1.4%.