via Sally Bakewell
Investors pulled cash from funds that invest in leveraged loans, while high-yield debt draws scrutiny from the Federal Reserve for losses it could inflict on investors in a downturn.
Mutual and exchange-traded funds saw outflows of $1.32 billion in the week ended Nov. 28, the third-biggest exodus this year, according to data from Lipper. Their junk bond counterparts also saw a withdrawal of $1.2 billion, the data show.
There were $992 million of net outflows from loan mutual funds, and $328 million from ETFs, the Lipper data show. Year-to-date inflows are still a net positive of $12.8 billion.
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credit markets are spooked – right now is where WH & Fed are trying to calm everyone – but how can they when the economy is entering a slowdown?
— Alastair Williamson (@StockBoardAsset) November 30, 2018
credit jitters pic.twitter.com/NaKDPNKJVO
— Alastair Williamson (@StockBoardAsset) November 30, 2018
$VIX is terrifying the credit market pic.twitter.com/Hero33toKW
— Alastair Williamson (@StockBoardAsset) November 29, 2018