Investment-grade corporate bonds have been strengthening as the prospects of an economic recovery and a slowdown in borrowing have helped support credit markets.
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Bank of America s Bull & Bear indicator showed sentiment climbed on a 1-10 scale to 7.1 last week from 6.7 on December 17.
This prompted Bank of America s chief investment strategist, Michael Hartnett, to say in a January 7 note that investors were rationalizing increasingly irrational price action on Wall St.
Hartnett laid out six warning signs to watch that could signal a bear market is beginning.
Investor sentiment has climbed from rock bottom in March to what is now approaching extremes on the other end of the spectrum and it s starting to worry Bank of America s top strategist.
Cooling Credit Appetite Spurs $1.3 Billion Exit from Giant ETF BlackRock Inc.’s $56 billion iShares iBoxx $ Investment Grade Corporate Bond (LQD) the largest credit ETF posted an outflow of $1.3 billion on Tuesday, the second-largest outflow for the fund.
Katherine Greifeld | Dec 10, 2020
(Bloomberg) After plowing cash into corporate bonds since March, exchange-traded fund investors are exiting en masse.
BlackRock Inc.’s $56 billion iShares iBoxx $ Investment Grade Corporate Bond (ticker LQD) the largest credit ETF posted an outflow of $1.3 billion on Tuesday, according to data compiled by Bloomberg. That’s the second-largest outflow for the fund, and comes just a month after LQD’s biggest withdrawal on record.