Fund flows and Crossover spell bad news for HY
The European high yield bond market is on rocky ground, as fund outflows are reaching record highs and the Markit iTraxx Crossover index moved above 440bp intraday, before recovering to around 435bp.
High yield bond funds suffered their biggest weekly outflow on record in the week to June 22, according to data provider EPFR Global, as $3.5bn was withdrawn from the asset class.
It was no surprise, but it is clearly not good news, said a high yield banker in London.
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