The Traderszone Network

Published in TZ Latest News 25 July, 2014 by The TZ Newswire Staff

High Yield Credit Market Flashing Red As Outflows Surge

As we have been highlighting for a few weeks, something is rotten in high-yield credit markets. This week, the mainstream media is starting to catch on as major divergences in performance (high-yield bond spreads are 30-40bps off their cycle tights from just prior to MH17 even as stocks rally to new record highs) and technicals weaken. However, as BofA warns, flows follow returns and this week saw the biggest outflows from high-yield funds in more than a year.

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