Mutual fund investors have been big buyers of bank loan portfolios over the past five years, pumping an estimated $100 billion net into the funds. The open tap from investors’ wallets to these funds has prompted creation of dozens of new funds since 2010, and led to 95 straight weeks of positive net sales.

But that streak was broken this April, and mutual fund investors have been pulling substantial amounts of money from the vehicles since—nearly $3 billion net for the first three weeks of June alone. The change in sentiment begs the question: Are some retail investors and their advisors overreacting to a performance soft patch, or will their recent stroll toward the exits turn into a stampede?

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