Investors retreated from the U.S. junk-bond market for the third straight trading day and stocks of large asset managers were hit by heavy selling, a sign that the deepest turmoil in financial markets since summer is intensifying. Some investors reported difficulties selling lower-rated bonds quickly or at listed prices, though others said the market appeared to stabilize somewhat after the record plunge in prices on Friday. While the market for the highest-quality bonds remains intact, there are signs across Wall Street that investors are losing confidence in lower-quality bonds and the firms that most actively deal in them. “Investors are nervous about how they should model earnings and if assets of these firms are as sticky as they thought,” said Anton Schutz, president of Mendon Capital Advisors Corp., who manages $700 million in investments. Stocks and high-yield bonds typically move in the same direction. But on Monday, as stocks […]