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Exit From Leveraged-Credit Funds Seen as Sign of Things to Come

When you use borrowed money to make a bet, you can win big and you can lose big, as some investors in closed-end debt funds are finding out right now.

Shares of such funds are plunging way below the value of their underlying assets, with the biggest discounts since the U.S. financial crisis. Traders seem to just want to get this stuff off their books, even at a painful price.