Investors haunted by higher U.S. borrowing costs are paring exposure to two of the hottest fixed-income trades of 2017: emerging markets and high-yield debt.
The biggest exchange-traded funds that track the two asset classes posted about $3.1 billion of withdrawals last week as U.S. Treasury yields breached a level that spurred a global selloff. The losses from the junk fund (HYG) were the biggest since Oct. 2016, while those from developing-nation fund (EMB) were the biggest since July last year.
