Investors cut euro corp bonds in June -Citigroup

(Reuters) - Hedge funds, which had been increasing positions in May,
also reduced positions this month to return close to levels seen
in March following a sell-off in Chinese stocks and jump in
corporate credit spreads.
"The subprime fallout probably has more in store,"
Citigroup's credit strategists wrote in a note released late on
Friday.




"But the reduction in positions gives us some comfort that
most credit investors will no longer feel compelled to react as
severely to negative news going forward," they wrote.


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