Risk Exodus Gets Real With Biggest Fund Redemptions in 6 Months
- Bond funds post twenty-second consecutive week of inflows
- Equities, high-yield and EM funds all have withdrawals
A pedestrian passes the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
An exodus from risk assets started in earnest as investors pulled billions of dollars from junk bonds and emerging markets.
A standoff over nuclear weapons between the U.S. and North Korea and racial violence in the American south triggered the biggest outflows from high-yield bond funds in almost six months and emerging markets saw their first outflow in 22 weeks, Bank of America Merrill Lynch strategists wrote in a note, citing EPFR Global data for the week ending Aug. 16.