Junk Rout Conundrum

If no one understands it, should you buy or sell?

As junk bonds plunge in value, many investors are wondering why.

There’s no obvious explanation for the 1.5 percent decline in U.S. high-yield securities in the past month, or the $9.9 billion of cash pulled from mutual funds that buy the debt. The most likely reason is that investors are increasingly uncomfortable hanging onto bonds that are expensive by historical measures.

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