Bond funds were dumped at the highest rate in more than two years as investors fled the fixed-income investments, Bloomberg News reported, citing a report from the Investment Company Institute (ICI).
Withdrawals from mutual funds that invested in municipal and other bonds totaled nearly $9 billion the week before Dec. 15, the news agency said, citing data from the investments trade group ICI. The report noted that the last time withdrawals were this steep was in October 2008, when investors took $17.6 billion out of bond funds.
The funds have been bleeding capital for months—according to the Wall Street Journal, the top five bond mutual funds in the world all lost money in the last two months.
Municipal bond funds were hit especially hard as outflows, which totaled $4.85 billion for the week ending Dec. 15, were the largest in four years, the Journal reported. The market for municipal bonds has been shaken up by the non-extension of federal bond-subsidies, among other factors.
Taxable bond funds saw almost $3.8 billion in withdrawals, while American stock funds and foreign equity funds had around $2.4 billion and $2.2 billion respectively in withdrawals, according to Bloomberg.
Withdrawals from mutual funds that invested in municipal and other bonds totaled nearly $9 billion the week before Dec. 15, the news agency said, citing data from the investments trade group ICI. The report noted that the last time withdrawals were this steep was in October 2008, when investors took $17.6 billion out of bond funds.
The funds have been bleeding capital for months—according to the Wall Street Journal, the top five bond mutual funds in the world all lost money in the last two months.
Municipal bond funds were hit especially hard as outflows, which totaled $4.85 billion for the week ending Dec. 15, were the largest in four years, the Journal reported. The market for municipal bonds has been shaken up by the non-extension of federal bond-subsidies, among other factors.
Taxable bond funds saw almost $3.8 billion in withdrawals, while American stock funds and foreign equity funds had around $2.4 billion and $2.2 billion respectively in withdrawals, according to Bloomberg.
