Aug. 31 (Bloomberg) -- Investors put money into high-yield corporate bond funds for the first time in 12 weeks, JPMorgan Chase & Co. said, citing figures from AMG Data Services. High-yield corporate bond funds reported net inflows of $83 million in the week ended Aug. 29, JPMorgan said yesterday, citing data from Arcata, California-based AMG. Outflows totaled $380 million in the prior week and $3.8 billion in the past 11. Demand for speculative-grade debt had plunged as delinquencies on subprime mortgages backing securities surged to a 10-year high, scaring investors away from risky debt. The widening of yield premiums that resulted, may have been enough to attract some investors back to the market. The extra yield investors demand to own non-investment grade bonds rather than U.S. Treasuries rose 5 basis points today to 448 points, according to Merrill Lynch & Co. index data. Spreads have widened 19 basis points this week. They are 11 basis points from their widest level since November 2003, Merrill data show. Investment-grade bond funds reported a fourth consecutive week of outflows, with investors pulling out $75 million, compared with $940 million last week, according to JPMorgan. High-risk, high-yield, or junk-rated, companies have ratings of Ba1 and below at Moody's Investors Service and BB+ and lower at Standard & Poor's. Risk appetite rising again !
It's nothing. The past 11 weeks had an average outflow of ~380-million dollars. The market seems "sold-out" for now.
The Slope of Hope in action. The buyers are suckers who believe in the awesome power of the Fed and government intervention, so they're attempting to buy the bottom.
Junk bonds are up 12% since the August 16th... And have been very orderly all week... So this is hardly "bottom fishing". Pro traders that specialize in this area... Which is about 10% of my trading... Have made a killing since the bottom... With negligible risk. You make the silly ET mistake. You actually think that the market is dominated by amateurs... When, in fact, it is dominated by seasoned Pros. Billions of dollars... Was transfered from amateurs to Pros in August.