JPMorgan: Outflows from U.S. junk bond funds could reach an 11-month high

GateUser-bd883c58 · 2026-03-28T04:35:52+00:00

JPMorgan predicts that U.S. junk bond funds may face the largest outflow since April last year, with an estimated withdrawal of $3.7 billion, indicating market concerns over the Iran conflict and widening credit spreads. The outflows have continued for six consecutive weeks, reflecting cautious investor sentiment.

GateUser-bd883c58

2026-03-28 04:35:52

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What does the continuous outflow of funds for six weeks compared to last year reflect about market concerns?

[J.P. Morgan: Outflows from U.S. junk bond funds may hit an 11-month high] Financial Association, March 19 - J.P. Morgan’s credit analysts expect that, amidst the widening credit spreads caused by the Iran conflict and its repercussions, U.S. high-yield bond funds will see their largest net outflow since the tariff-related market turmoil in April of last year. Based on daily fund flow estimates, the bank anticipates that as of the week ending March 18, U.S. junk bond funds will experience an outflow of $3.7 billion. If this estimate holds true, it will mark the largest outflow since the week ending April 9 of last year. This would also extend the outflow streak to six weeks, matching the number of consecutive outflow weeks as of the week ending January 15, 2025.

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