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Bond Funds Are On Their Own

Credit risk has migrated from banks to investors.
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Bond Investors See More High-Yield Trouble

“Sorry, the trader just stepped away,” is a Wall Street cliché sometimes used to describe the tendency of broker-dealers to conveniently disappear from their desks during times of market stress.

Unfortunately for debt investors, it seems vast swathes of the credit market are on a permanent break thanks to huge changes wrought on the business of trading corporate bonds in the aftermath of the financial crisis.