Investors withdrew $2.15 billion from U.S. junk bond mutual funds in the week ended Wednesday, the second-biggest outflow on record and the most since August, AMG Data Services reported.

The outflow, reported late on Thursday, marked the fifth straight week of outflows from junk bond funds and followed a $221 million outflow the week before.

Junk bonds, which lack investment-grade ratings, suffered from profit-taking in recent weeks amid worries about rising interest rates and a downturn in equities. The bonds have posted a 3.1 percent loss this month, wiping out gains from a rally in January, according to Merrill Lynch.

The number of funds seeing inflows tumbled to 70, the fewest since 1994 and down from 148 the week before, AMG Data said. Funds reporting outflows rose to 286 from 207.

With cash leaving the market, junk-rated borrowers have struggled to sell new issues. Five companies have pulled junk bond sales or found other sources of funding in the last two weeks.

Consumer products maker Revlon Inc. on Thursday said it would not complete a planned $400 million sale because of unfavorable market conditions.

(AMG)