Junk Bonds Set for Worst Month Since 2011
- Slowing global growth hurts lower-rated credits, BI says
- Funds investing in high-yield debt have reported big outflows
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Pummeled by expectations of slower growth, outflows and dropping oil prices, junk bonds are poised for their worst returns in more than seven years.
High-yield bonds are returning -2.64 percent in December, on track for the worst month since September 2011. The asset class has lost 2.59 percent so far this year, set for the biggest loss since returns fell 4.47 percent in 2015, according to the Bloomberg Barclays High Yield Total Return Index.