To get the Best of the Bond Market delivered to your email daily click here.
MoneyBeat: – Why aren’t stocks and bonds moving in opposite directions? – It was once one of the basics of building a portfolio: Stocks and bonds tend to move in the opposite direction. But that relationship has broken down in recent months.
MoneyBeat: – Bill Gross bounces back after spring swoon. – Bond king Bill Gross’s fund bounced back this month following the debt markets’ spring swoon.
Indexuniverse: – Why you should buy munis now. – David Kotok, chief investment officer of Cumberland Advisors, is looking right past the Detroit bankruptcy and Meredith Whitney’s warning about the dangers of municipal bonds and sees tremendous opportunities in the muni market. With total assets under management of more than $2 billion, the firm casts a long shadow.
Learn Bonds: – HHMI: Top yielding Aaa rated 10-year bonds. – Charles Margolis takes a closer look at Howard Hughes Medical Institute’s new $1.2B 10-year taxable corporate bonds dated July 22.
Morningstar: – Bonds fall out of favour. – Investors are selling their bond funds in droves – after Ben Bernanke’s QE comments inspire stock market confidence.
Reuters: – After Detroit, muni bonds are safe, but no slam dunk. – Despite the Detroit bankruptcy and record sell-off of municipal bonds this year, most top-quality “munis” are safe to hold.
MarketWatch: – Why individual bonds remain very attractive. – Since the bond market had its little hissy fit over Ben Bernanke’s “tapering” comments a month or so ago, we’ve heard plenty about a coming bear market in bonds. In GMO’s recent quarterly letter, James Montier even went so far as to pose the question: “Are we witnessing the death of bonds as an asset class?”
Bloomberg: Walsh’s unconstrained wins in bond rout: Riskless return. – Steve Walsh, who manages the Western Asset Total Return Unconstrained Fund, was able to limit bond losses in May and June as top-ranked managers including Bill Gross stumbled amid a Treasury selloff. What’s his secret.
Reuters: – Fed to keep buying bonds, but may point to plans to taper. – The U.S. Federal Reserve likely will decide at the end of a policy meeting on Wednesday to continue buying bonds at an $85 billion (55 billion pounds) monthly pace, but it could alter an accompanying statement to spell out the possibility of scaling back purchases later this year.
CNBC: – Why I’m selling bonds ahead of the Fed. – Bond yields are destined to go higher—the only real question is how quickly.
Barron’s: – No huge muni rally likely, just steady improvement. – The timing of Detroit’s default has made it a particular nuisance for the muni market, which is still struggling to right itself after seasonal weakness in March and April gave way to a sharp bond sell-off in May and June, leading to heavy ongoing investor withdrawals from muni-bond mutual funds and ETFs. Fund-flow figures will be key to watch as investors start getting lured back to the sector by yields that are lately looking unusually high compared to corporate bonds.
USA Today: – Is now the right time to bail out of bonds? – Bonds have turned into a bad word with investors. Many have suspected a bond bubble was inflating, and now investors are finding out.
Every Investor: – QE driving investors out of bonds. – The news from the IMA that fixed income funds have seen record redemptions does not surprise us. We have been warning for some months over the growing risks in fixed income and the absence of fundamental value across much of the market.
Advisorshares: – Investors pull $17.5 billion from bond mutual funds in July so far. – Investors keeping socking money into U.S. Equities while outflows from bond mutual funds (MFs) continue.
WSJ: – In wake of Detroit, Michigan County to sell bonds. – A county in the heart of Michigan’s auto country is planning to sell $53 million of bonds, the biggest test yet of investors’ willingness to lend to a locality in the wake of Detroit’s bankruptcy filing.
Fox Business: – Nervous muni investors watching Detroit. – Odean Capital co-founder Mathew Van Alstyne on the impact of Detroit’s bankruptcy on the municipal bond market.
Due to rapidly improving budget deficit, Treasury will reduce dollar amount, not frequency, of 2 & 3yr auctions in Q3.
— AnthonyValeri (@Anthony_Valeri) July 31, 2013
Muni bond issuance dropped to $25.0 billion in 727 deals last month from $28.6 billion in 945 deals in July 2012.
— James Ramage (@RJamesRamage) July 31, 2013