UPDATE: High-yield Bonds Rally, As Funds Take Advantage Of Lower Prices

By Murray Coleman

SAN FRANCISCO (Dow Jones) -- Prices of high-yield bonds spiked up Wednesday as money moved back into more credit-risky debt.
"The day's move was one of the year's most impressive," said Justin Monteith, a KDP Investment Advisors Inc. analyst, said on Wednesday in a phone interview from his Montpelier, Vermont, office.
"After a dramatic fall, we've essentially seen a stabilization in high-yield bond prices this month," he added. "On Tuesday we saw a move up. But on Wednesday, the market showed a significant rise with a lot of breadth."
The KDP High Yield Daily Index of prices rose to 77.90, up form 77.76 a day earlier. Yields fell 0.04% on Wednesday to 8.46%.
High-yield issues of Six Flags (SIX) were leading the surge higher early in the day, with those bonds trading up as much as 5 points. Most other liquid junk bonds were up 1-2 points, according to KDP's Monteith.
A few of the gains were earnings-driven, he wrote in a report. Those included Revlon Inc. (REV) , which gained 3.5 points in early trading. Read more this articles.....