(by Ameli Berksman)

U.S. junk bond mutual funds outflow fell to $26 million in the week ended Wednesday compared with $91 million in the prior week.
Junk bond funds have got over $8 billion of outflows this year suffering from profit-taking having place recently in the light of clients’ anxiety about the impact of lifting interest rates.

Returns on junk bonds including price and interest changes boosted to 3.7 per cent from 3.1 per cent prior week.

Plunge in default rates caused last year’s rally; rating agencies do not expect defaults to go down.