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High-Yield Funds Post Record $4.8 Billion Outflow, BofA Says

U.S. high-yield funds recorded their biggest outflow on record this week, according to Bank of America Corp., as concern that the Federal Reserve may ease stimulus measures began to take hold.

Investors pulled an unprecedented $4.8 billion from funds that purchase notes sold by companies rated below investment grade, the Charlotte, North Carolina-based bank said in a report yesterday. That was accompanied by outflows from high-grade funds, the first weekly decline this year, even as leveraged loans attracted about $1 billion, bringing this year’s gains to $28.5 billion, a 38 percent increase in assets since the start of the year, Bank of America said.