Credit Nerves on Show as Junk Fund Sees Biggest Exodus in Months
- Outflows from high-yield debt ETF are starting to add up
- Corporate-bond spreads jumped on Monday amid stock selloff
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More than two weeks of doubt and volatility in the stock market are finally starting to show up in corporate bonds.
Investors fleeing the iShares iBoxx High Yield Corporate Bond exchange-traded fund (HYG), the largest ETF tracking U.S. junk debt, pulled $1.06 billion from the product on Monday, according to data compiled by Bloomberg. That was the biggest exit since the coronavirus-triggered selloff in February. At the same time, having shrugged off much of the recent equity turmoil so far, spreads on high-yield debt jumped by the most in three months.