Are bonds funds riskier than bonds? Yes, and here’s why.

bonds vs bond funds

A recent article in Seeking Alpha, “Are bond funds riskier than bonds?” by Robert Keyfitz makes the argument that the mainstream financial media has answered this question incorrectly. Suze Orman, Barrons, and Investopedia have all run articles … [Read more...]

How the Size and Composition of the Bond Market Has Changed Since 1980

bond market size

Since 1980, the size of the US bond market has increase by 15 times, in terms of the outstanding debt by par value. In terms of the market value of the debt, the number is likely even higher. US Bond Market Size 1980 - $2.54 Trillion 1990 - … [Read more...]

Are municipalities gambling with taxpayer money or being smart?

interest rate swaps

A recent article by Bloomberg, “Rigged Libor Hit States-Localities With $6 Billion” made it sound like Municipalities made bad financial bets. Municipalities bought around $500 billion of interest rate swaps prior to the beginning of the financial … [Read more...]

The Myth That Mom and Pop Are Driving Down Junk Bond Yields

junk bond market 1

I am sure the numbers being reported regarding individual investors rushing into high yield bond funds are true. However, I am not sure the correct facts are being circulated. The main narrative that has been reported everywhere from Barrons to the … [Read more...]