U.S. Credit Traders Send Warning Signal to Rest of World Markets

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Credit traders have an uncanny knack for sounding alarm bells well before stocks realize there’s a problem. This time may be no different.

Investors yanked $1.1 billion from U.S. investment-grade bond funds last week, the biggest withdrawal since 2013, according to data compiled by Wells Fargo & Co. Dollar-denominated company bonds of all ratings have lost 2.3 percent since the end of January, even as the Standard & Poor’s 500 index gained 5.7 percent.