Photographer: John Taggart/Bloomberg

Bond Tourists Expose Soft Underbelly of America’s High-Yield Market

Inflows from increasingly fickle foreign investors pose new risks.

Here’s another chart to scare you this Halloween: Foreign investors, who now represent 39 percent of funds dedicated to the U.S. high-yield fixed-income market, have become ever-more sensitive to the asset class’s performance since the financial crisis.

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