Big Outflows in Risky Credit Funds as Investor Concerns Grow

The video discusses significant outflows from riskier credit funds due to investor concerns over global trade tensions. It highlights ETF flows as indicators of market activity, noting substantial withdrawals from high yield bond funds. Despite these outflows, bond returns have been strong, with investment grade bonds outperforming high yield bonds. Borrowing costs remain low, making it a favorable time for credit, even amidst some risk aversion.

How do the returns of investment grade bonds compare to high yield bonds this year?

What does the current borrowing cost situation indicate despite the outflows?