High Yield Bonds
High yield bonds are not immune to the tapering of QE.
Net inflows into U.S. focus equity funds were somewhat ahead of last year’s pace by the end of January. Estimated net inflows of $18 billion compares to last January’s $16.1 billion.
1998 Inflation Projections: CPI expected to end 1999 about unchanged from year end 1998 levels (year over year change of 0.0%).
Net inflows into equity funds lagged somewhat behind last January. We estimate U.S. focus equity funds experienced still strong net inflows of $17 billion, but foreign focus net inflows may have been less than $1 billion (net redemptions in the first few weeks).