US Junk-Bond Funds Post Biggest Outflow in Over a Year
- Investors pulled a net $3.75 billion from high-yield funds
- Other asset classes saw inflows shrink amid Treasuries selloff
This article is for subscribers only.
Funds that invest in US corporate high-yield notes saw the biggest outflow in more than a year as the Federal Reserve’s hawkish approach to inflation makes investors wary.
Investors withdrew $3.75 billion from junk bond funds in the week ending April 17, according to data from LSEG Lipper, the most in 14 months. Treasuries have sold off in April as solid economic readings and hawkish Fedspeak have reinforced speculation that interest rates will be higher for longer.