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%.

According to AMG, investor pulled a net $796 million in assets from U.S. stock funds in the same week, while they poured a net $330 million into municipal bond funds.

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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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