Buyers are jockeying for a piece of the second-biggest U.S. corporate bond sale ever, painting a picture of insatiable demand for anything with a yield. Money flowing away from exchange-traded funds (ETFs) suggests something else.

Just as Actavis Plc marketed its $21 billion bond offering on Monday to help fund its acquisition of Botox maker Allergan Inc., investors yanked $519 million from BlackRock Inc.'s iShares Core U.S. Aggregate Bond ETF.

It was the biggest daily redemption in the fund's 11-year history, and brought outflows from U.S. ETFs focused on top-rated bonds to about $2 billion in the past week, according to data compiled by Bloomberg.

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