Three powerful bond investors are shunning new high-yield bond sales backing leveraged buyouts on concerns over the potential impact of the turmoil in the US sub-prime mortgage market on the US economy.

TIAA-CREF, which manages over $400bn (€293bn) of retirement funds for teachers and college professors, Fidelity International and Lehman Brothers Asset Management have said they are avoiding buying high-yield bonds and loans amid underlying market volatility, despite a jam-packed new issue deal pipeline.