Investors are pouring money into U.S. corporate credit due to a combination of higher yields and attractive valuations, fund managers said. Salim Ramzi, Global Head of Exchange Traded Funds and Index Investments at BlackRock, told the Reuters Global Markets Forum: We have reassessed credit to an attractive level.” This has benefited fixed income ETFs such as the iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and the iShares High Yield Corporate Bond ETF (HYG). each this year. “We don’t know exactly when inflation will peak, but I don’t think it’s a million miles away,” said Jim Leavis, chief investment officer for public fixed income at M&G Investments. If we’re at this turning point, the entry level looks very attractive from buying investment-grade credit in[the US],” Ramzi said. The surge has made corporate credit more attractive to income-seeking investors after years of low interest rates.”
Finsome:The combination of attractive valuations and high yields has made US corporate credit ETFs more attractive to investors.
- corporate credit
- fixed income
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