High yield exodus continues with further $3.5bn in outflows

Investors pulled a record amount from high yield bond funds in the week to 22 June.


The redemptions, well in excess of the previous high of $2.15bn in outflows seen in May 2010, came amid shrinking yields and questions over credit quality, according to EPFR Global.

The moves came in the context of a more bearish outlook across the board: redemptions from Europe bond funds reached their highest levels for three years, and only one of nine major equity fund groups – GEM funds – saw inflows on the week.

"With discouraging US, European and Chinese data also in the mix, the only fund groups to shine were two of the more conservative ones, US Bond Funds and Balanced Funds," EPFR Global said.

Nonetheless, there were signs of greater appetite on a sector basis: commodities, energy, real estate and consumer goods sector funds all took in more than $300m in fresh money over the seven-day period.


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