High yield bond funds see record US outflows amid flight to safety

US high yield bond funds and ETFs have seen record outflows this week, according to Lipper data, amid a spike in yields for the asset class in both the US and UK.

Over the week ending 6 August, investors have pulled a record $7.1bn (£4.2bn) from US-based high yield mutual funds and ETFs, according to Lipper data. This represents the fourth week in a row US high yield bond funds have seen outflows, a total of $12.6bn having now left the asset class over this time period as yields spiked. With US treasuries continuing to rally in recent weeks, average spreads on high yield bonds have widened significantly since the beginning of July, according to Barclays indices, jumping 73 basis points to 445 bps. Average yields on these bonds have risen by ...