A week after investors pulled out of low-grade bond funds at record levels, ING’s chief investment officer Christine Hurtsellers said that the selloff is “overdone.”

Fearing that interest rates could jump up if the Federal Reserve tapers off its monetary easing policies, investors withdrew $4.63 billion from “junk” bond mutual funds and ETFs. It amounted to the second largest weekly outflow from overall taxable bond funds, but that anxiety is overblown and firms are jumping the gun on the Federal Reserve, Hurtsellers said.

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