Hedge fund exposure to US junk bonds has hit its highest level since the start of the global pandemic according to a report by Bloomberg. Pension funds meanwhile have cut their holdings in response to concerns about corporate debt.
The report cites data from Barclays as showing that that hedge funds have increased their holdings in high-yield bonds from 12.4% last year to 14.5 per cent currently, following a 26% fall in total junk market value.
Pension fund allocations meanwhile, have fallen by more than 20% this year to around pre-pandemic levels, according to the data, while insurance companies have increased their share to about 12%.
