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Investment-grade bond funds, which posted outflows during the
prior week, took in $124 million during the week that ended
March 2, according to ICI.
High-yield bond funds added a second straight week of new money,
the data showed, as investors pumped $3.6 billion into the
funds, more than double the prior week.
"High-yield and risk assets are moving in lock step with oil
prices," said Niklas Nordenfelt, senior portfolio manager at
Wells Fargo Asset Management, which has seen inflows in its
high-yield products. "High-yield is also benefiting from the
fact it has sold off and started showing pretty attractive
yields."
During the prior week, junk-bond funds in the United States
broke a 15-week streak of outflows that swallowed $28.8 billion
of the funds' cash and precipitated the December collapse of
Third Avenue's Focused Credit Fund.
"Investors embraced risk taking through bond funds last week,"
said Todd Rosenbluth, who directs mutual-fund research at S&P
Global Market Intelligence. "This is more than six times as much
that went into government funds."
Government bond funds, which have benefited from a flight to
safety, took in just $571 million this week, down from an
average $1 billion per week over the prior two weeks. But the
government funds nonetheless added a 12th week to their streak
of inflows.
Municipal-bond funds added a 22nd consecutive week to their
inflows, taking in $934 million during the week, ICI said.
Results for stock funds were mixed. Funds focused on domestic
shares posted $2.2 billion in outflows during the week, while
international stock funds took in $2.2 billion of new cash,
according to ICI, a mutual fund trade organization.
Some stock funds saw outflows "even as the market moved higher,"
according to Rosenbluth.
(Reporting by Trevor Hunnicutt; Editing by Nick Zieminski)
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