Bond managers buy back into high yield after record sell-off

Fixed income managers have taken advantage of pricing opportunities in the high yield space to move back into the asset class, after outflows hit record levels in June following the Federal Reserve's tapering talk.

Flows out of high yield funds during the month totalled $9.7bn after Federal Reserve chairman Ben Bernanke spooked investors by saying the central bank may start slowing its bond purchasing programme. Flows started to reverse last month as investors piled $2.4bn back into the asset class in just one week to 17 July. This is the largest ever weekly inflow into high yield funds (excluding ETFs), according to analysis from Bank of America Merrill Lynch. M&G’s Richard Woolnough (pictured) and Kames Capital’s Philip Milburn were among bond managers to take advantage of falling prices after...