Investors pull most money from a high-yield bondfund

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Investors pull most money from a high-yield bondfund

The investors pulled the most money last week from a popular high-yield bond fund after the coronaviruses crisis landed in the U.S.

The SPDR Bloomberg High Yield Bond ETF JNK saw outflows of $717 million last week, according to FactSet Research. Some investors have been encouraged by the resilience of credit during the stock market turmoil of 2021. This year, the high-yield fund has slipped 3%, which is less than the 6% drop for the S&P 500 SPX. Investors like corporate bonds as an alternative to the economy slows but doesn't fall into a recession. Companies are likely to keep meeting their debt obligations as long as the economy grows, despite the fact that equities suffer as growth prospects slump. A report last week showing 467,000 non-farm jobs created in January shows that companies aren't seeing a recession on the horizon, even though an array of other high-frequency data has been slowing.