“Big swings in ETFs and mutual funds have many professional investors worried about the potential disruption to prices of their underlying bonds, because outflows mean that fund managers need to find bonds to sell to meet redemptions,” Dow Jones Newswires reported.
Junk bond ETFs were down sharply for the second straight day after Friday’s weak nonfarm payrolls report. The funds are testing the 200-day simple moving average after May’s sell-off. Trading volume in high-yield bond ETFs spiked Thursday.
High-yield ETFs were a popular option in early 2012 as investors stretched to boost income.
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