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Barron’s: – Rubber-duck investing. – UBS Wealth Management’s Alexander Friedman and Mark Haefele warn investors against getting sucked in by the freak-out over the taper. The Fed’s growing confidence, they say, suggests a strong U.S. economy for the next two to four years.
Telegraph: – How to protect your pension from a bond market crash. – It won’t just be investors with money in corporate bond funds who will be affected if there is a serious shake-out in the bond market. The price of fixed-interest investments such as bonds and gilts affects the value of your pension fund, the level at which you can fix your retirement income and how many so-called “cautious” funds perform. We look at the options for insulating your finances from a burst bond bubble.
Quartz: – Not pleased with your yield-less investments? Invest in doom! – Tired of old-fangled investments? Had it up to here with Bernanke-induced market panics? Just want to pile on the risk already? We have a solution: Invest in disaster!
Learn Bonds: – Jeff Gundlach: 3 points every investor should know. – Bond guru Jeff Gundlach was on CNBC Wednesday and had some interesting things to say. Here’s what you need to know.
ETF Daily: – Fed tapering won’t cause a bond market armageddon. – But even if the Fed scales back its pace of bond purchases in the second half of 2013, investors shouldn’t expect rates to finish the year much higher than where they are today. My expectation is that by year’s end, the yield on the 10-year Treasury will be trading somewhere between 2.25% to 2.5%.
BusinessWeek: – Gross’s Total Return among worst performing bond funds in slump. – Bill Gross’s $285 billion Pimco Total Return Fund (PTTRX) led declines among the most-popular bond mutual funds after the Federal Reserve sparked a global selloff by indicating it may start reducing asset purchases.
MarketWatch: – How to change your bond strategy. – Many have predicted it, and they have been either “early” or wrong. But this time there are signs it’s for real, the big bond market correction has begun. The good news is, you still have time to prepare. The key to mitigating the effects of rising rates is to lower the maturity and duration (interest rate sensitivity) of your bond holdings and set up a “ladder” of individual bonds and ETFs that mature over the next several years.
The Street: – Shifting away from junk bonds. – Worried about rising interest rates and volatile stock markets, investors have been selling high-yield bonds — which are rated below-investment grade. During the past month, high-yield funds dropped 2.0%, according to Morningstar. Is it time to move away from the low-quality issues? Some top managers think so.
WSJ: – Investors see more losses in investment-grade corporate bonds. – High-grade U.S. corporate bonds continued to suffer losses on Thursday, a day after Federal Reserve Chairman Ben Bernanke signalled the central bank could slow its bond-buying program later this year.
MuniNetGuide: – What’s next for the muni market? – By now, it’s clear the Fed’s efforts to communicate policy nuances to the market have backfired in a major way. In trying to explain the complexities of monetary policy, Chairman Bernanke has succeeded only in creating more fear and confusion.
Financial News: – Bernanke’s bond-buying paradox for markets. – The Federal Reserve believes reducing its bond purchases as the economy improves won’t act as a drag on the economy. But getting fractious financial markets to fall in line with that view could be a struggle.
Investing.com: – Are bond prices close to bottoming? – Just about every economists and major market player has come out of the closet as a bear on the bond market. Recently we’ve seen massive outflows from bond funds and even on days like yesterday as equities weaken, bonds were unable to catch a bid. But I think things may be approaching a reflection point in the bond market.
The Street: – New global high-yield bond fund offers promise. – In the last few weeks markets have reacted swiftly to the threat of the Federal Reserve beginning to “taper” its bond purchases and other accommodative policies. An end to the current Fed policy would result in higher yields and lower prices for bonds and bond funds.
Telegraph: – Is the bond bubble about to burst? – Ignis manager Chris Bowie tells Emma Wall that his predicted “bond crisis” could already have begun.
FT: – Bond traders take cue to exit Treasuries. – No matter that the Federal Reserve and chairman Ben Bernanke explicitly and repeatedly linked any future slowdown in its monthly $85bn of bond purchases to a substantial improvement for the economy, Treasury investors heard only one thing: the interest rate cycle is turning, it’s time to sell bonds.
Reuters: – Municipal bond, pension enforcement head to leave US SEC. – The chief of enforcement for municipal securities and public pensions at the U.S. Securities and Exchange Commission, Elaine Greenberg, will step down in July to begin working in the private sector, the SEC said on Friday.
The muni mkt anticipates $10.2B in volume next week, vs. $3.80B this week. Given where the mkt is, will all of those expected sales happen?
— James Ramage (@RJamesRamage) June 21, 2013
Treasury bond yields are the new Spanish bond yields
— Chris Adams (@chrisadamsmkts) June 21, 2013