Investors are channeling nearly €1.9 billion into BlackRock (NYSE:BLK)'s iShares euro corporate bond ETF (IEAC), which tracks high-grade bonds in euros, setting the stage for a record inflow this November. This surge is driven by growing confidence that central banks may halt interest rate increases.
- The IEAC, which saw significant inflows during the market turbulence caused by COVID-19 in April 2020 due to policymakers' support, has reached a yearly high in assets at €15.2 billion as of September 2023.
- The euro investment-grade bonds index has indicated a year-to-date return nearing its annual peak at 4.4%.
- Brett Pybus, global co-head of iShares fixed income, mentioned that there's been an uptick in client activity within credit markets, attributing this to increased confidence in the stabilization of interest rates.
The influx of capital into the IEAC reflects a broader trend among investors seeking stability in the face of economic uncertainty and reassessing risks associated with potential changes in monetary policy.
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