In Europe, there is a different problem, namely the banks which are still not lending and so putting pressure on companies to raise capital in other ways.
Head of fund research at Brewin Dolphin, Ben Gutteridge said the market's response to the sector, for now at least, is not the signal of something more worrying, but equally it is not a good time to be adding to existing holdings.
An end to volatility?
While much of the outflows so far have been a result of investors switching out of high yield into safer money-market and government bond funds, Gutteridge believes we have seen the bulk of the selling.
Read MoreUS high-yield bond funds hit by worst outflows
"A general improvement in economic performance and corporate profitability leaves us doubtful that investors will sacrifice the yield currently on offer in high-yield bonds in order to move into cash or government bonds. We are also sceptical that holders of high-yield bonds would be motivated to switch into equities, given the pervasive overweight that already exists in this asset class," he said.
But in the short-term, volatility is set to remain.
"An illiquid trading environment has exacerbated price declines that first began in June on profit taking and then continued through July as equity markets remained volatile on a host of concerns from geopolitics to earnings to the economy," said investment strategist for LPL Financial, Anthony Valeri.
Read MoreWhy you shouldn't worry about high-yield outflows
"While high-yield volatility has startled some, we view it as a natural market correction. High-yield bonds may remain volatile near term, but if the average yield (which is now 5.9 percent) increases, it should help bring out demand given still-low yields across high-quality bond markets," he said.
—By CNBC's Jenny Cosgrave: Follow her on Twitter