In its ETP Landscape Monthly Snapshot publication, the group said the pullback in interest rates” has helped put year-to-date fixed income flows of $40.5bn (£24.18bn) on pace to surpass the record $70bn (£41.8bn) haul of 2012.”
In the month of May BlackRock said global fixed income ETPs enjoyed inflows of $14.1bn (£8.4bn), which it said were “paced by longer duration US Treasuries and investment grade corporate funds and also extended to categories offering enhanced income such as high yield and emerging markets debt”.
In the month, the high quality / lower risk categories (which included longer duration US treasuries, European government bonds, investment grade corporate debt, and broad developed market fixed income) contributed $10.9bn (£6.5bn), BlackRock said.
But, it added: “The reach for yield benefitted high yield corporate, emerging markets debt and municipal bond ETPs, which gathered a combined $2.8bn. (£1.7bn)”
Overall, it said: “Global ETPs flows reached $20.8bn (£12.4bn) in May, with a shift toward fixed income as investors simultaneously sought out high quality/lower risk exposures and continued to reach for higher yields”.
“Global fixed income ETPs continue to grow faster than the overall industry, propelled by the secular trend of rising ETP penetration of the broader fixed income market as well as the accommodative monetary policy of the post-crisis years,” it said.
