Tags: Investors | Billion | Junk-Bond | Funds

Investors Withdraw $1.2 Billion from Junk-Bond Funds

Thursday, 18 September 2014 07:12 PM EDT

Investors pulled $1.2 billion from U.S. funds that buy high-yield bonds, the largest weekly outflow since a record $7.1 billion during the first week of August, according to data provider Lipper.

The third straight week of withdrawals increased this year’s net outflows to $12.7 billion, Lipper data show. Investors also pulled $583 million from U.S. funds that purchase leveraged loans in the week ended Wednesday, the 10th straight period of outflows. Net withdrawals increased to $5.9 billion, according to Lipper.

The pullback has prompted speculative-grade borrowers such as Scientific Games Corp. to sweeten terms for investors to get deals done. The company this week increased yields on a loan that will help finance its purchase of Bally Technologies Inc.

Losses of 0.96 percent from junk bonds in September have pared this year’s gains to 4.8 percent, putting 2014 on track for the slimmest returns since 2011, according to the Bank of America Merrill Lynch U.S. High Yield Index.

Loans have lost 0.3 percent this month, leaving gains of 2.13 percent for the year, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 index.

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Markets
Investors pulled $1.2 billion from U.S. funds that buy high-yield bonds, the largest weekly outflow since a record $7.1 billion during the first week of August, according to data provider Lipper.
Investors, Billion, Junk-Bond, Funds
184
2014-12-18
Thursday, 18 September 2014 07:12 PM
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