Bond Buyer: – Some gambled big on American Airlines bonds after bankruptcy – and won big. – American Airlines has about $1.5 billion of unsecured municipal bonds. “The bonds are all up,” said Jon Barasch, director, municipal evaluations at Interactive Data, after reviewing trading activity on a series of CUSIPs. “Trading levels strongly indicate that the belief is there will be a full recovery at par for unsecured bondholders,” said one high-yield investment specialist.
Bloomberg: – Junk bond buyers head for the exits. – The biggest buyers of junk bonds are in retreat as exchange-traded funds suffer unprecedented withdrawals with the debt facing its first losses in eight months.
Investors Chronicle: – The numbers some ETFs don’t want you to see. – You wouldn’t buy a fund without considering fees, but failure to inspect the tracking difference of an exchange traded fund (ETF) could be just as severe an oversight.
WSJ: – Inflows return to emerging-market hard-currency bond funds. – Emerging-market hard-currency bond funds drew inflows in the latest week, recovering from investors’ exit from these funds the previous week, according to fund-tracker EPFR Global.
Learn Bonds: – The guru strategy for bond investing. – The guru strategy is simple. First pick a really smart investor, like Warren Buffet or David Einhorn then find out what securities they are holding and buy them. For stock investors, there are sites that make this process very easy, but for bonds, the process is more complicated. But don’t worry our very own Marc Prosser shows you how.
Crossing Wall Street: – What if the stock market were a bond? – An update to one of the more off-the-wall ideas. Curious to see what the historical performance of the stock market looks like, but in the form of a bond. Then Eddy Elfenbein has the answer.
Wonkblog: – How a junk bond bubble is driving a buyout and merger boom. – The merger and buyout boom of 2013 is upon us! Some of America’s biggest companies are coupling up faster than frisky teenagers at their first unchaperoned party. What many of the deals have in common is that they are being unleashed by a surge in corporate credit. The markets for bonds in even risky companies are becoming unfrozen to a degree they haven’t been in half a decade, and there seems to be some pent-up eagerness to do big deals.
FT: – BlackRock fixed income chief steps down. – Peter Fisher, the BlackRock executive, is stepping down as head of its powerful fixed income arm, putting the division in the hands of a younger generation, according to an internal memo from chief executive Larry Fink.
Boston Globe: – Bonds, once a safe haven, may be next big risk. – Investors are well trained to worry about stock market crashes. But what if the next big risk lurking on the horizon is in bonds?
ETF Trends: – Muni Bond ETFs: Migratory patterns. – Migration away from some states could lead to them having to tighten their belts as income from a dwindling population, puts pressure on services.
Barron’s: – Will rising bond yields hit developing world stocks? – These days, everyone knows that government bonds are expensive. And everyone knows that stocks, at least on a relative basis, are cheap. But how high much can bond yields rise before that valuation advantage disappears?
Fox Business: – Why investors are flocking to the bond market? – Stifel Nicolaus a portfolio manager at Chad Morganlander talks to Fox Business about this weeks inflows into the bond market. Why is it happening and is it the start of a long term trend?
ETF Trends: – Morningstar’s model ETF portfolio for younger investors. – Exchange traded funds can make creating a simple portfolio for younger investors cheap and straightforward. Younger investors usually have less capital to work with, emphasizing the need the make every penny count. With that in mind, here’s a model portfolio created by Morningstar, It includes about 4-5 ETFs and is based on ETFs rather than mutual funds.
Reuters: – Banks see big drop in 2012 fixed-income. – Revenue from commodities trading at global investment banks fell by a quarter last year from 2011, making the asset class the worst performer in the fixed-income business of banks, an industry survey showed on Thursday.