Combined US, European and Global high yield funds absorbed over $3bn in the week ending 19 October, according to EPFR Global fund data.
This was a record amount in dollar terms and the highest percentage of AUM since the first week of 2009.
Cameron Brandt, director of research at EPFR, said: "The inflows were broadly based. European high yield funds posted inflows for only the third time in the 42 weeks year-to-date and institutional investors committed money for the eighth week in a row."
EPFR Global put the surge down to increased risk appetite due to higher hopes for a European resolution in the near future.
In another indication of investors taking on more risk, GEM equity funds posted their best week since early May.
But in the year-to-date Emerging Market equity funds have suffered outflows of $41.2bn, giving back nearly half of last year’s total inflows of $84bn.
The data provider said investors had recovered their hunger for emerging markets equity, but continued to balk when it came to specific regions and markets, with most regional and country specific fund groups experiencing redemptions.
Looking at other regions; Europe managed to show small inflows as institutional inflows into Germany equity funds offset retail redemptions from the area.
Meanwhile, US equity funds ended the week with minimal outflows after downbeat Q3 corporate earnings overrode better-than-expected macroeconomic data.
Finally, Japanese equity funds saw inflows of $4.4bn and became the leading inflow recipient among the major developed markets, despite nerves ahead of Q3 reporting season.
