BofA on HY/IG Paper: 'Santa came early'
BofA on HY/IG Paper: 'Santa came early'
The analyst comments "Inflows were recorded across the fixed income spectrum over the last week. With the “santa rally” in full swing, the bid for beta returned with inflows into IG and HY credit continuing as government bond funds continue to struggle. Short term IG funds were able to recover from a rare outflow and overall have been the clear standout performer of the year. We note that despite similar levels of inflows for IG funds in this year and last, HY funds have underperformed significantly more. We think credit demand is likely to continue into 2026, but we expect a softer trend."
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