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...]

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...]

The Effect of ETFs on Individual Bonds

The Financial Lexicon

The recent LearnBonds article, “Should You Avoid Buying Bonds in LQD? Or Maybe LQD?” brought to readers’ attention a fascinating article by Matt Levine of Dealbreaker, which discussed the idea that bonds underlying ETFs react more dramatically to … [Read more...]

Investment Ideas From PIMCO: Buy TIPS, Municipal Bonds & High Quality Financials

bill-gross-of-pimco

Bonds would be burned to a crisp and stocks would certainly be singed; only gold and real assets would thrive within the “Ring of Fire.” - Bill Gross, “Damages” October 2012 The quote above is slightly out of context. Bill Gross is discussing … [Read more...]

The Big Picture: World Central Banks Temporarily Soothe The Market But Worry Long-Term Investors

chart with pen

(October 2012) Tom Kenny of About.com recently published the “ 2012 Third Quarter Bond Market Returns: the Third Quarter in Review”.  In the report, he highlights the fact that emerging market bonds had a stellar quarter - up almost  7% , while … [Read more...]