The High-Yield Explosion

Jefferies is out with its latest weekly Global Asset Fundflow Tracker looking at the latest trends in money flows into various types of funds.

One thing that really stands out.

The flow of funds into high-yielding funds just goes up and up and up. These are funds that own relatively risky debt, offering yields well above risk-free rates. Not surprisingly, given ultra-low returns on traditional investment vehicles, the interest in this area huge.

Photo: Jefferies

Now compare that to, say, China…

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Photo: Jefferies

Or if you want to see something really ugly, look at the trend in Spanish fund flows…

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