Investors Make Move To Junk Bonds

New York Investors, taking cues from a recovery in the stock and Treasury bond markets, plowed money into junk-bond mutual funds in the latest week at the fastest rate in two months.

Brokers and individual investors socked away a net $470.4 million in junk-bond mutual funds in the week through Wednesday, AMG Data Services said. That’s the biggest weekly amount since late February, before the junk-bond market’s tumble in March.

“It’s put a little bit of momentum back in the market,” said Jerry Paul, who manages $3 billion of junk, or high-yield, bonds at Invesco Trust Co. in Denver.