News and analysis on ETFs, mutual funds and hedge funds. May 5, 2016, 1:00 P.M. ET 1 By Chris Dieterich The popularity of the market’s biggest exchange-traded fund that tracks an index of junk bonds has cooled at the same time that rallies in oil and natural resources stocks abated in recent days. Bloomberg notes that the $15.9 billion iShares iBoxx High Yield Corporate Bond ETF (HYG) has seen redemptions to the tune of $2.6 billion over the past four trading sessions, the largest such streak of outflows since… you guessed it, February, when credit markets and oil were in free fall. The amount of cash that left HYG is third behind only much larger institutional trading tools, the $179 billion SPDR S&P 500 (SPY) and the $34 billion PowerShares QQQ (QQQ), over the past week, according to XTF. Recent outflows more than offset the $1.3 billion that went into HYG during the first quarter, as worries that low oil prices would prompt defaults across the oil patch diminished. Significantly less money, $246 million, has trickled out of $12.5 billion SPDR Barclays High Yield Bond ETF (JNK), the other big junk-bond ETF, over the past week. So, somebody likely took down a chunky position in high-yield bonds but flows haven’t swamped other ETFs at this point. Over the past month, some $213 million has come out of the iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) and another $116 million has moved out of the VanEck Vectors High-Yield Municipal Index ETF (HYD).
Merryn Somerset Webb Retweeted Atilla Demiray @xtrends 6h6 hours ago circle of life: firms buying their own shares with borrowed money while #insiders dumping onto their own firms.
Yep, saw this. Utilties are also being sold off. That is a sign that the market is pricing in a rate hike in June higher than the odds the FFFs are giving. I estimate it at 25%