Nearly $1 Billion Swamps Junk-Bond ETF in Record Haul Before Fed
- Billions have been poured into credit ETFs as risk assets rise
- Risk-on rally may become a Fed-driven ‘head-fake’: Zaccarelli
This article is for subscribers only.
Exchange-traded fund investors are diving headfirst into high-yield debt just days before the Federal Reserve’s interest-rate decision.
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.