Investors cut junk bond holdings as debt fears mount

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Billionaire investor Carl Icahn is not the only one sounding the alarm bells on high-yield debt, with investing arms of some major investment banks cutting back exposure to the sector on fears that their debt piles are looking unsustainable.

Fears over the health of the U.S. economy and the timing of a Federal Reserve interest rate rise have weighed on high-yield bond prices. Otherwise known as junk bonds, high-yield is issued by firms that are deemed below investment grade by ratings agencies.

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