Have debt mutual funds have gone too far?

Here’s a rather illustrative article showing how mutual funds are reaching for yield and doing a disservice to debt investors:

In the past year or so, we have had the IL&FS blowup, spikes and possible wipeouts in DHFL bonds, the issue with loans against promoter holdings in Zee Entertainment and ADAG. Industry insiders are saying that there are plenty of other skeletons in the closet just waiting to come out.

Although, seems like it started. In the past couple of days, news broke about the issues Emami seems to be having with its debt burden and pledged shares:

What do you think?

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