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ETF Trends: – TIPS ETFs see outflows as investors scale back inflation bets. – ETFs and mutual funds that invest in Treasury Inflation Protected Securities are experiencing outflows as investors pull back on bets that loose monetary policies from central banks will trigger runaway inflation.
Reuters: – If US inflation keeps falling, buy more bonds-Fed’s Bullard. – The Federal Reserve should buy bonds if inflation continues to fall, a top Fed official said on Wednesday, stressing the US central bank needs to prevent inflation from being too far below its target.
Barron’s: – Corporate bonds defy gravity, history by not falling with inflation expectations. – Amid deteriorating US economic data, growth worries in Europe and China, falling commodity prices and declining inflation expectations, corporate bonds (along with stocks) are defying both history and gravity by continuing to rise.
Learn Bonds: – Reliance Steel’s new 10-year notes are worth a look. – When scouring a list of recently priced new issue corporate bonds, there was one in particular that piqued my interest. I currently own Reliance Steel & Aluminum’s November 15, 2036 maturing, 6.85% coupon notes. So when I saw the company was issuing new 10-year notes, I wanted to take a look.
Portfolio Advisor: – Can convertible bonds 50:30:20 rule help you? – Convertible bonds have come back into the spotlight in 2013. After several years of low issuance levels, the first quarter of this year has seen the strongest level of issuance since 2008, according to Bank of America Merrill Lynch. This is prompting many advisers and asset allocators to re-acquaint themselves with the asset class. So what role could they play in portfolios today?
Morningstar: – What to look for with muni funds. – Morningstar’s Miriam Sjoblom discusses how to gauge whether a muni fund is more apt than a taxable-bond fund, yield risks and other key focus points, and some of her muni-fund recommendations.
Morningstar: – Do municipal bonds have a place in my portfolio? – You should consider the tax implications before adding municipal bond investments to your portfolio.
Reuters: – Rate spike may lead to US muni ‘Armageddon’-SEC member. – Investors in the $3.7 trillion U.S. municipal bond market could soon face an “Armageddon” if interest rates spike, a member of the Securities and Exchange Commission said on Tuesday.
Sandeep Godiyal: – 3 long-term Treasury ETFs worth considering in the present environment. – Against the current economic backdrop, investors may want to consider parking their money in long-term Treasury ETFs. Here are three of the most popular ETFs in this asset category that may be good choices. All three of these funds have a Zacks rating of 3, which means that they have the potential to provide an excellent upside.
Bond Buyer: SEC panel focuses on price transparency for retail investors. – Securities and Exchange Commission commissioners and market participants at an SEC fixed-income roundtable Tuesday wrestled with how to improve the transparency of municipal bond trading and prices, particularly for retail investors.
Bloomberg: – Cheapest revenue debt draws buyers fleeing Stockton. – The worst-performing part of the municipal market is drawing buyers as bankrupt Stockton, California’s attempt to stick investors with a loss heightens the appeal of debt backed by revenue from services such as water and electricity.
Market Wired: – State Treasurers overwhelmingly support maintaining tax-exempt status of municipal bonds. – Forty-two of the nation’s state treasurers are appealing to members of Congress to maintain the tax-exempt status of municipal bonds, an issue that has long-term ramifications for state budgets and the nation’s public infrastructure projects.
Adam Aloisi: – The absurdity of a bond bubble. – I continue to be amazed at the amount of “bubble” commentary being blown the bond sector’s way. The omnipresent argument seems to be that since interest rates are historically low, they have nowhere to head but higher, and this somehow creates a bond bubble. While it’s undeniable that rates are low and may go higher in time, this does not mean all bonds, or any bond for that matter, is in a bubble.
Oblivious Investor: – Fixed-maturity bond ETFs. – Mike Piper responds to a reader who asks. about building a laddered portfolio of bonds using the Guggenheim Bulletshares Corporate Bond funds as opposed to a general corporate bond ETF or mutual fund to generate income and reduce risk.
Forbes: – Junk bonds: Higher yields, higher defaults. – What comes from a portfolio of loans to borrowers that aren’t always scrupulous about repaying? Long intervals of pleasurably high income punctuated every now and then by a short, sharp shock.
— Cate Long (@cate_long) April 17, 2013