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Friday, August 25, 2017
International investors dump junk bonds due to various factors
ANBOUND

Due to concerns of the rising interest rate, the Central Bank's policy and the uncertainty of geopolitics, international investors like JP Morgan, DoubleLine Capital LP, Allianz Global Investment, Deutsche Bank have dumped the "junk bonds". JP Morgan cut their possession of “junk bonds” from 50 % of their investment to 40 %. Critics warned that high yield bonds entail high risk, therefore necessitating a large reduction of it. The current trend of selling has triggered the alarm of the capital market.

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