Investors Rush Into Junk Corporate Bonds As Fed Rate Cut Speculation Goes Wild: High-Yield Credit ETF Sees Record Monthly Inflows

Benzinga · Jul 30 04:40

The riskiest segments of the corporate fixed income market are experiencing a massive influx of investor capital in recent weeks as traders bet the Federal Reserve will cut interest rates at its September meeting and continue with a swift rate-cut cycle.

U.S. corporate bonds rated CCC or lower — which are at the bottom of the credit rating scale and represent companies with a high likelihood of default — have rallied nearly 3% this month. This surge positions junk bonds for their best monthly performance to date in 2024.

Disinflation Fuels Rate-Cut Frenzy: High-Yield Bonds Benefit

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Investors Rush Into Junk Corporate Bonds As Fed Rate Cut Speculation Goes Wild: High-Yield Credit ETF Sees Record Monthly Inflows

Disinflation Fuels Rate-Cut Frenzy: High-Yield Bonds Benefit

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