High-yield bond mutual funds saw outflows total an eye-popping $7.1 billion last week.
“HY flowmageddon,” said Goldman Sachs’ Charles Himmelberg in a research note we saw via @lebullmarche. “This is the largest HY outflow on record – a 6-sigma event when flows are scaled by mutual fund assets under management!”
Sigma is another way of saying standard deviation. And the greater the number of standard deviations, the more unlikely the event.
A 6-sigma event is extremely rare. If you want to put a number to it, think 1 in 500 million.