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High-yield bond funds saw their sixth consecutive week on positive inflows for the week ended Aug. 12, data from Refinitiv Lipper showed, netting $1.5 billion for the week.

By the numbers: The six-week streak followed the fourth worst weekly net outflows on record dating back to 1992, showing sentiment on the riskier bond category has been soundly reversed.

  • High-yield or junk bond funds saw steep outflows in Q1 (-$14.2 billion) as investors reacted to COVID-19, but that was followed by record high quarterly net inflows in Q2 ($41.5 billion).
  • "Its net intake of $14.1 billion for Q3 to date has the potential to be its second-best quarterly result," Refinitiv Lipper senior research analyst Pat Keon said in a note.

Where it stands: "The performance from the high yield funds group has mirrored that of its fund flows activity for the year to date," Keon states.

  • After seeing significant losses and outflows, high-yield bonds have bounced back and are now down just 0.5% for the year.

Yes, but: While lower-rated high-yield bonds tend to be more correlated to stocks than other bond categories, high-yield has trailed the stock market's rebound this year.

  • In comparison to junk bonds' still-negative return for 2020, the S&P 500 has gained 4.4% year to date and the Nasdaq has risen 23%.

The intrigue: Refinitiv's data show most inflows to the category have come from mutual funds ($33.8 billion), while ETFs have contributed $21.8 billion to the total net positive flows.

  • Equity funds have seen negative fund flows so far this year.

Go deeper

Ben Geman, author of Generate
Oct 30, 2020 - Energy & Environment

ExxonMobil posts loss and plans big job cuts

Photo: Budrul Chukrut/SOPA Images/LightRocket via Getty Images

ExxonMobil reported a $680 million quarterly loss on Friday and announced plans for steep spending cuts, which comes just a day after it revealed plans for major layoffs.

Why it matters: The announcements signal how the company, which has made huge investments in supply expansions in recent years, is struggling to adjust to the sector's new reality.

Ina Fried, author of Login
Oct 29, 2020 - Technology

Apple sets September quarter sales record despite later iPhone launch

Apple CEO Tim Cook, speaking at the Apple 12 launch event in October. Photo: Apple

Apple on Thursday reported quarterly sales and earnings that narrowly exceeded analysts estimates as the iPhone maker continued to see strong demand amid the COVID-19 pandemic.

What they's saying: The company said response to new products, including the iPhone 12 has been "tremendously positive" but did not give a specific forecast for the current quarter.

Oct 29, 2020 - Technology

Facebook beats on earnings

Photo: Thomas Trutschel/Photothek via Getty Images

In earnings for the 2020 third quarter released Thursday, Facebook reported modest user growth but revenue increases that beat Wall Street expectations.

Why it matters: Facebook's business looks resilient and thriving despite — or maybe because of — the pandemic.