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FT: – Fire drill reveals bond fund exit weakness. – Bond investors fear some markets will not cope when real trouble hits, leading to big price falls.
MoneyBeat: – Bond trading rises with volatility. – As a spike in interest rates fanned volatility in recent months, the amount of corporate debt changing hands increased, according to research by J.P. Morgan Chase & Co.
Business Insider: – It’s a good thing that the bond gods at PIMCO have been getting slammed. – The flagship Total Return Fund had its worst month since 2008. Outflows from the fund hit a record in June. This can’t be any fun for the folks at PIMCO, but actually it’s a sign that PIMCO is doing its job, and giving its investors bond exposure.
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MarketWatch: – Think twice about dropping bond funds. – If you’re worried about the bond funds in your retirement savings, take a deep breath and think twice before following the crowd.
MoneyBeat: – Goldman Sachs becomes less bearish on Treasury bonds. – Goldman Sachs is becoming less bearish about the Treasury market after a sharp selloff, though it still says Treasury prices will tumble more in coming years.
The Laptop Investor: – Bonds: The ship has departed. – Is it too late to trade the most overcrowded trade on the planet? Absolutely not, however, the ship has most definitely left the harbor and entering a trade now will come with the added level of risk that yields could waver.
Value Investors: – Treasuries in free fall: Are they cheap enough to buy? – As investors unceremoniously dump treasuries in favor of equities, is now a good time to own these fallen angels and are they cheap enough to buy?
About.com: – June job report stops the bond market rally in its tracks. – After performing poorly for most of the second quarter, bonds had stabilized somewhat in recent weeks as higher yields fueled renewed investor interest. That changed on a dime on Friday, however, as a better-than-expected employment report – which showed a gain of 195,000 jobs and an surprising increase in labor-force participation – led to a renewed sell-off in bonds.
MuniNet Guide: – Muni supply returns after holiday week. – This has been the kind of market that tramples even the most astute contrarian investors. Those who saw value restored in the bond market after May and June’s dramatic sell off barely had time to digest their holiday meal before they were faced with yet another interest rate surge.
MarketWatch: – The market in a minute: Bonds send warning. – While equity investors appear to be wearing rose-colored glasses, bond markets are sending some warning signs.
Forbes: – Holding bonds to balance stocks? There are better ways. – there are great options for balancing out stock market volatility; and therefore there’s no need to rely on an asset class for that job that itself faces huge challenges over the next few years.
MarketWatch: – Volatile agency mortgage bonds may get government boost. – Agency mortgage-backed securities have seen increasing volatility alongside the rest of the bond market as investors fret over the Federal Reserve’s plan to trim its pace of bond-purchases. And because the Fed purchases agency MBS as part of its monetary stimulus, that sector has been particularly reactive to plans to slow the central bank’s easy money policies.
Fresh Business Thinking: – Global growth rate remains supportive of high yield bonds. – High yield bonds continue to offer an attractive risk/return profile compared to other fixed income investment alternatives in 2013, states ING Investment Management.
Sober Look: – Retail fixed income investor capitulation. – Spooked retail investors are exhibiting complete capitulation in their bond portfolios. They have been dumping fixed income assets, particularly munis, in record amounts.
FT: – Investors pile into short-term bond funds. – Fixed-income investors are piling into short-term bond funds and dumping longer-term debt, to shield their portfolios from the worst of a market rout as interest rates rise.
After lagging Treasuries, avg 30yr FN MBS "current coupon" yield spread +0.87% above 10yr Trsy yld, not far from 5-yr avg of +0.94%
— AnthonyValeri (@Anthony_Valeri) July 9, 2013