Not exact matches
Yet we also
see very strong inflows into
junk bond funds, based on the belief that these high yields represent value rather than information about default probabilities.
A
fund with this exposure can certainly lose money during a 2008 - type crisis because of liquidity concerns, but it won't suffer anything like the carnage we
saw with
junk bonds.
U.S. Municipal
Bonds: (Data as of May 16,2013) Corporate
junk bond yields have risen as mutual
funds have
seen outflows.
Corporate
junk bond yields have risen as mutual
funds have
seen outflows.
The largest exchange - traded
junk bond and bank - loan
funds have fallen to discounts to the value of their assets rarely
seen since the products first became popular four years ago.