Due to worries about the subprime woes affecting the mortgage market and the risks of high-yield bonds, investors are moving their money out of mutual funds that specialize in these sectors and into better-quality bond funds, such as Treasuries, which are enjoying rising yields, The Wall Street Journal reports.

Up until now, “the generic assumption was that if [a company] had a little bit of cash flow, you could [leverage] the lights out of it,” said Mark Hudoff, a high-yield portfolio manager at PIMCO. “Investors are rejecting that.”

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