Credit Brief: Selling Junk and Buying ABS; Growing Distress

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• Investors including BlackRock and Vanguard Group are betting that junk bonds will keep getting hammered, and are seeking refuge in asset backed securities
• Demand for investment-grade bonds is shrinking as yields rise in other markets
• The amount of distressed debt spiked last week as money managers drop risky securities

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To contact the reporters on this story:
Dan Wilchins in New York at dwilchins@bloomberg.net;
Caleb Mutua in New York at dmutua@bloomberg.net

To contact the editor responsible for this story: ...