High-yield and emerging-market bond funds also saw outflows of $800 million and $600 million, respectively. “Fed tightening, US decoupling, flattening yield curve, collapsing emerging markets, underperforming levered quant strategies ... all echo 1998,” they said. BAML particularly warned clients to watch credit spreads in “excessively indebted” Europe, China, emerging markets and US companies in the “BBB” ratings category. Overall, bond funds in the past week shed $1.9 billion. Emerging-market equity funds’ losses were limited to $200 million; emerging-market debt funds lost $600 million.

Source: Mint September 07, 2018 13:18 UTC