Funds and ETFs have helped make it easy to get into junk and low-quality bonds. But it might not be so easy to get out.
U.S. funds investing in debt rated below investment grade lost an average 1.33% last month and redemptions hit $5 billion the WSJ reports.
Many investors say liquidity is drying up as the Fed pares its monthly stimulus and large banks trim their bond inventories.
They spoke with a few fund managers who say it’s growing more difficult to sell and some who are buying Treasuries for the first time in years.
Bloomberg USD high yield corporate bond index
