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Reuters: US junk bond funds report $141 mln net outflow-AMG

Fri Mar 21, 2008 9:54am EDT

NEW YORK, March 21 (Reuters) - U.S. junk bond mutual funds reported a $141 million net outflow in the week ended Wednesday, following a $190 million net outflow the prior week, AMG Data Services reported late on Thursday.

Junk bonds are rated below investment grade and carry high yields to compensate for their risk. A global credit crunch and slowing U.S. economy have raised worries that corporate defaults are set to rise, hurting demand for junk bonds.

Waning investor appetite has taken a toll on junk bonds' performance this month. According to Merrill Lynch data, the bonds on average have posted a 1.4 percent loss so far in March and a 3.9 percent loss year to date.

(Reporting by Dena Aubin, Editing by Chizu Nomiyama)



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http://www.reuters.com/article/bondsNews/idUSN2142441520080321