BOSTON ( TheStreet) -- The cash holdings of bond mutual funds are ballooning this year as mounting economic concerns keep managers from buying new debt, despite growing inflows from investors looking to avoid risk.The average cash stake in the 1,623 funds tracked by Morningstar (MORN) rose to 9.8% at the end of June from 9.1% at the end of 2010, or by about $243 billion, according to Morningstar data. The average bond fund's cash position was at 10.2% at the end of 2007 and 10.1% at the end of 2008 as investors sought to avoid risk during the recession.
Bond Funds Hoard Cash Amid Economic Woes
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