Junk Loans Record Inflows Halting; How Concerned Should You Be?
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What happens when unprecedented flows into the $1.1 trillion junk-loan market stop? Investors may be about to find out.
Investors yanked $276 million from loan mutual funds in the week ended April 16, breaking a 95-week streak of deposits, Wells Fargo & Co. data show. Leveraged loans - those rated below investment grade - are poised for their first monthly loss since August, and the biggest exchange-traded fund investing in the debt yesterday reported its first withdrawal since June, according to data compiled by Bloomberg.