(Business Insider) U.S. high-yield mutual funds finished last week in significant outflows, with $3.5 billion in cash withdrawals from retail mutual funds (72%) and ETFs (18%), as reported by Lipper. This represents the largest one-week redemption in the last 70 weeks since the record $7.1 billion outflow in August of 2014. While it is difficult to know exactly what drove the large redemptions, media coverage about two large leveraged debt funds that have frozen redemptions fueled concerns in the marketplace about the increasing illiquidity of the high-yield asset class.
The failed hedge funds everyone’s freaked out about do not look anything like the average high-yield bond fund Columbia Management Perspectives
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