Funds that invest in high-yield bond have dropped in value globally and saw record outflows of $672m (€491.7m) last week as investors pulled capital amid fears of a credit crunch.

It was the worst week for net outflows since March and the seventh straight week of net outflows from the sector, according to US research house EPFR Global. The run has seen $2.9bn (€2.1bn) pulled out of the funds so far.