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Junk bonds losing favour amid glut

Issuance of US high-yield, high-risk notes in 2015 is 20% ahead of last year's pace

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Even with the change in sentiment, terms are still attractive to borrowers as the Federal Reserve (above) holds interest rates near zero. Moody's Investors Service said in a report on Tuesday that investor protections in new US junk bonds fell to the weakest level in at least four years.

New York

AFTER swallowing US$67.8 billion of junk bonds this year, the market is taking a breather.

Investors pulled abour US$2 billion from mutual funds that invest in the riskier debt, snapping six weeks of inflows, according to data provider Lipper. The exodus comes as

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