High-yield bonds attract flows

High-yield bonds have given stocks a run for investors' money this year, and a tepid U.S. economic recovery could keep institutional money flowing to that corner of the credit market, some market watchers say... Even with the Merrill Lynch U.S. High Yield Master II index surging 48.5% this year through Sept. 30, investors have continued to allocate money to high-yield bonds.

For example, on Aug. 7, the board of the $12.6 billion Kentucky Teachers' Retirement System, Frankfort, hired Cincinnati-based Fort Washington Investment Advisors Inc. to manage a $200 million high-yield bond mandate, its first allocation to that market segment, according to a spokesman for the system...

Pension & Investments: High-yield bonds attract flows