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Bailey McCann, Opalesque New York:

According to the latest ETP Landscape report from New York-based BlackRock Investment Institute – a global fund manager, January’s global net asset flows into fixed income Exchange Traded Products (ETPs) set a new monthly record, attracting $9.1bn in net new assets. This helped propel the ETP industry to its best January ever with $34.1bn in net new assets and a total of $1.651tln in assets under management (AUM).

The results buck significant historical trends; the last time January inflows beat December was in 1994. The report credits persistently low interest rates in the US coupled with relaxing concerns over Europe’s economic situation with helping push ETPs over for January. Fixed income ETPs set a new global record, attracting $9.1bn eclipsing the previous record monthly fixed income inflows of $6.73bn set in January, 2009.

Data shows that investors are slowly becoming more confident in the US economy and its low but persistent growth – North American equities attracted significant new inflows as a result. High-yield corporate bonds and emerging markets equity also gained traction with investors wary of China’s potential for a hard landing.

High-yield corporate bonds are expected to continue being a standout for investors in early 2012. The report notes, "the $7.0bn gathered by investment grade and high yield corporate bond products represents a f......................

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