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High-Grade Bond-Fund Outflows Hit $35.6 Billion, Smashing Record

  • Withdrawal dwarfs second-largest outflow of $7.3 billion
  • Record $249 billion added to government money-market funds
A man walks along Wall Street near the New York Stock Exchange.
Photographer: Michael Nagle/Bloomberg
Updated on

Investors withdrew an unprecedented $35.6 billion from U.S. funds that buy up investment-grade debt this week as the global market rout from the spreading coronavirus intensified. At the same time, a record $249 billion poured into U.S. government money-market funds.

The withdrawals from corporate high-grade debt blow through the previous record $7.3 billion outflow from last week, according to Refinitiv Lipper. Funds that buy junk bonds lost $2.9 billion in the five business days ended March 18, while leveraged loan investors withdrew about $3.5 billion.