U.S. junk bonds decline amid trade uncertainty, oil rebound

Junk investors pulled cash from U.S. high-yield funds for three straight weeks and seven of the last 12 weeks, with Lipper reporting an outflow of $828M last week.

Yields rose across ratings and spreads widened when equity markets slid amid U.S.-China trade policy uncertainty and oil logging in its biggest weekly gain in three weeks.

Supply shortage is expected to persist with Barclays forecasting about $180B-$200B next year, little changed from 2018.

Source: Bloomberg First Word.

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