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Cash Drains From Junk-Bond Funds at Fastest Pace in Two Months

  • Withdrawals come as end of stimulus meets growth concern
  • Aberdeen manager looks past buoyant cycle ‘into next problem’
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Alan Ruskin Sees Stimulus Boosting Bond Yields

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Investors are draining cash from junk-bond funds at the fastest pace in eight weeks as doubts emerge over a risk rally that’s compressed yields to record lows.

Funds that buy bonds of companies with relatively fragile balance sheets had $600 million in withdrawals in the seven-day period through Nov. 9, according to a Bank of America Merrill Lynch report citing EPFR Global data. The trend is borne out by Lipper U.S. Fund Flows data, which shows investors yanking cash out of the U.S. junk-bond market for two consecutive weeks.