Junk Universe Sell-Off: Nothing To Worry About?

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Rupert Hargreaves
Published on
Updated on

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…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk