High Yield Investors Quietly Exiting Stage Left (JNK, HYG)
From ZeroHedge:
We have discussed the divergence between US equities and credit
markets a number of times in the last few months with the old adage that
"credit anticipates, and equity confirms." Well, it appears the
high-yield credit investors are 'anticipating' in size. State
Street reports that yesterday saw the 2nd biggest withdrawal ever from
their $11.6bn JNK ETF. Around $380mm (or over 3%) was redeemed -
and we note the price did not exactly reflect that kind of unwind. The
more worrying feature is that the last time HY credit investors were
this 'sure' was May 2012 and it pre-empted a 9% drop in the S&P 500
and 5% drop in JNK price. The divergence remains extreme.
and closer up - this year has been 'different'...MORE
See also yesterday's "
Queen's Bank, Coutts, Warns on High Yield (HYG)".