Amid record inflation numbers and the expectation of a more hawkish Fed, high yield fixed income saw a rally within several sectors for the week ended July 15.
Insurance companies are allocating more money from their portfolios to exchange-traded funds particularly into fixed income ETFs, according to research from S&P Dow Jones Indices.
Returns for U.S. high yield fixed income is leading most fixed income sectors so far this year. High yield returned -7.7% year-to-date as of May 31, according to BondBloxx Investment Management co-founder and CIO Elya Schwartzman in a monthly update on the U.S. credit markets.
After experiencing roughly $10 billion in outflows year-to-date, high yield fixed income ETFs have brought in more than $2.7 billion in investor capital over the past week, and $4.3 billion in a month.