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Record Exodus From Credit Funds Outpaces Flight From Stocks

  • Investment-grade debt suffers $7.5 billion outflows: EPFR
  • Redemptions compare to modest losses for equity-focused funds
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Pimco’s Gene Frieda says "high yield and credit generally are overvalued."Source: Bloomberg

Nervous money managers fled from corporate bonds like never before in an exodus that outpaced stocks.

Record outflows hit funds that buy investment-grade debt from the likes of Apple Inc. and Ford Motor Co., according to Bank of America Corp. strategists citing EPFR Global data. The redemptions totaled $7.5 billion in the week through Oct. 10.