Investors still bullish on high yield as fund inflows continue

High hopes for high yield

Christian Weber, UniCredit: any closure of the new issue market could lead to heightened default risk

The standout asset classes in the credit markets last year in terms of return were undoubtedly high yield and the emerging markets. And while there are signs that the rally in EM bonds may be slowing, allocations towards high yield continue to surge. According to funds data provider EPFR Global, net inflows into high yield bond funds exceeded $1 billion for five of the first six weeks of 2011, with year-to-date inflows more than double that of the next highest sector, global bond funds. EM bond