US high yield bond funds have been hit with a record $7.1bn (£4.2bn) outflow in the past week, data from Lipper shows, while investors also pulled money from other riskier areas of the market including US-based equity and stock ETFs.
The latest US fund flow data from Lipper for the week ending 6 August 2014 also reveals that investors pulled $15.8bn from US based equity ETFs, the highest outflows seen in six months.
The exodus from US high yield funds in the past week also marks the biggest outflow since Lipper records were first established back in the early nineties.
Overall bond funds faced a less severe outflow of $4.8bn in the last week, with emerging market debt funds recording $760m worth of redemptions while equities also took a hit with $16.4bn in outflows over the same period.
These latest figures show a clear move by investors away from riskier assets shortly after US Federal Reserve chairman Janet Yellen issued a warning that valuations in lower-rated corporate debt had become stretched, as well as areas of the equity market including social media stocks and biotech.