Traders Plow Record Cash Into Junk Bond ETF As Tone Improves

Ted

FYI: High-yield bond ETF has received most-ever inflows over 6 days
HCA Holdings boosts high-yield debt offering to $1.5 billion

Investors are sinking cash back into the largest junk-bond exchange-traded fund signaling that the rout in the market for risky corporate debt may be overdone.
Regards,
Ted
http://www.bloomberg.com/news/articles/2016-03-01/investors-plow-record-cash-into-junk-bond-etf-as-tone-improves

Junkster

The proxy for junk bonds - the Merrill Lynch High Yield Master II Index - is now positive for the year. This amid the most negative headline news ever in that category - even more negative than 2008.

MOZART325

Pimco and Alliance Bernstein are now bullish on junk, but Bill Gross and Doubleline (Gundlach and Bonnie Baha) are still negative:

bloomberg.com/news/articles/2016-03-03/pimco-wades-into-junk-as-doubleline-warns-danger-still-lurks

Junkster

G, from the article about the surge in August and October. The h0A0 *surged* less than 1% in the August move and only 3.6% in the October rally. The greatest surge in 2014 was 4%. This recent move including today's gain will be around 6%. A nice move in so short of a time. One of the rules in trading is when markets do something out of the ordinary it's time to buy or sell depending on that out of the ordinary catalyst. We saw that out of the ordinary up day in oil last month and since then it has been up and away for junk and stocks. It is looking more and more like 2/11 was THE bottom. Still nothing surprises me and I find it best to trade with an empty mind and with no opinion. In the meantime, I am 100% junk in my taxable and 80% in my IRA. Tomorrow's reaction to the employment report may require a change in the above percentages.