Last week investors pulled $6.8 billion from high-yield bond funds last week, the third-biggest outflow on record. Several factors contributed to the outflows including worries about the sustainability of yields at multi-year lows, rising interest rates, China worries and concerns surrounding struggling US tax legislation.
However, while bond funds suffered outflows, investors snapped up equities. Equity portfolios added $3.2 billion, with tech funds recording their second-biggest ever inflow according to data from Bank of America.
[klarman]
Investment -grade bond funds also recorded significant inflows. Funds holding investment grade securities recorded inflows of $4.8 billion, the 47th straight week of inflows according to BoA.
Many believe that this junk bond sell-off has been...
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