Investors Flee Junk-Bond Funds, Pour Record Cash Into High-Grade
- Investors withdraw most from high-yield since August
- High-grade fund inflows reach $23.4 billion in January
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Investors pumped the brakes on U.S. high-yield credit funds as markets grappled with ramifications of the human and economic fallout from the coronavirus. More than $23 billion was added to high-grade bonds this month.
Buyers yanked $2.9 billion from junk bond funds for the week ended Jan. 29, nearly wiping out gains of the $3.6 billion added so far this year, according to Refinitiv Lipper data. This week marked the biggest withdrawal since the week ended Aug. 7 when investors pulled more than $4 billion.