FYI: The U.S. bond market’s loudest bears have long warned about complex risks: a credit crunch, companies dumping debt held offshore, or a foreign buyers’ strike.
But the outlook for the corporate bond market might depend on a group that is closer to home—namely, individual investors. Mom and pop investors seem to be souring on the corporate debt market, which is an unfortunate development for companies--and their borrowing costs.
In October, investors pulled $23 billion out of taxable bond funds, according to Lipper data. That was the most of any month since a $50 billion net withdrawal in December 2015, back when Third Avenue’s junk-bond fund was forced to close its doors after posting losses of 27% for the year.
Regards,
Ted
https://www.barrons.com/articles/corporate-bond-funds-1541643869?refsec=income-investing
