Page Perry

The percentage of mutual fund money invested in junk bonds (a/k/a high yield bonds) rose to its highest point in a decade as of February 29 of this year, and junk bonds have outperformed all major asset classes over the past three years. But junk bond funds are now under selling pressure. Investors have been removing money from junk bond funds at record levels recently. Levels of redemptions were at their fourth largest levels on record last week as net outflows from junk bond mutual funds and exchange traded funds amounted to $2.46 billion (“Appetite for Junk Bonds Shrinking Fast,” Wall Street Journal).