{"id":1719212,"date":"2022-11-01T06:06:09","date_gmt":"2022-11-01T10:06:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1719212"},"modified":"2022-11-01T07:34:08","modified_gmt":"2022-11-01T11:34:08","slug":"nearly-1-billion-pours-into-junk-bonds-ahead-of-fed-rate-decision","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nearly-1-billion-pours-into-junk-bonds-ahead-of-fed-rate-decision\/","title":{"rendered":"Nearly $1 Billion Pours Into Junk Bonds Ahead of Fed Rate Decision"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnearly-1-billion-pours-into-junk-bonds-ahead-of-fed-rate-decision%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1719212&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2022\/11\/01073407\/d82f5ec41bcdb71bad876a3eeca121ed\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p>(Bloomberg) &#8212; Exchange-traded fund investors are diving headfirst into high-yield debt just days before the Federal Reserve\u2019s interest-rate decision.<\/p>\n<p>Most Read from Bloomberg<\/p>\n<p>Risk assets of all stripes have been climbing as optimism builds around the Fed dialing back the pace of rate hikes after it delivers an expected fourth-straight, 75-basis-point rate increase Wednesday. The renewed appetite for risk has boosted equities and sent billions into credit ETFs despite lackluster corporate earnings.<\/p>\n<p>Traders poured roughly $980 million into the $8.5 billion SPDR Bloomberg High Yield Bond ETF (ticker JNK) on Friday in the fund\u2019s biggest one-day inflow since 2007, Bloomberg data show. The influx follows JNK\u2019s strongest two-week rally since May.<\/p>\n<p>But this week\u2019s Fed meeting may deliver a reality check to the bulls, according to Independent Advisor Alliance\u2019s Chris Zaccarelli.<\/p>\n<p>\u201cWe believe this will ultimately be a head-fake as any risk-on rallies will run out of steam once investors realize the Fed is serious about raising rates and keeping them higher for longer,\u201d said Zaccarelli, the firm\u2019s chief investment officer. \u201cFrom a fundamental point-of-view it is a risky time to be buying risk assets, although from a technical point-of-view it makes sense short term.\u201d<\/p>\n<p>Momentum cooled Monday, with JNK dropping 1% alongside US stocks. The worst inflation in a generation and the Fed\u2019s campaign to cool has dragged JNK more than 12% lower on a total-return basis this year, Bloomberg data show.<\/p>\n<p>DataTrek Research\u2019s Nicholas Colas sees Monday\u2019s price action as a blip. Junk bond spreads over Treasuries have narrowed in recent weeks, suggesting that there\u2019s little concern about corporate America\u2019s ability to cover interest costs or refinancing expenses.<\/p>\n<p>\u201cThe highest risk parts of the US corporate bond market are signaling similar confidence to that of American equity markets just now,\u201d DataTrek co-founder Colas wrote in a note Monday. \u201cWe are looking for HY spreads over Treasuries to continue to narrow as a confirmation that the current equity market rally has further room to run.\u201d<\/p>\n<p>Most Read from Bloomberg Businessweek<\/p>\n<p>\u00a92022 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; Exchange-traded fund investors are diving headfirst into high-yield debt just days before the Federal Reserve\u2019s interest-rate decision.Most Read from BloombergRisk assets of all stripes have been climbing as<\/p>\n","protected":false},"author":1,"featured_media":1719215,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1719212","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1719212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1719212"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1719212\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1719215"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1719212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1719212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1719212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}