Tag Archives: corporate bonds

Weirdness in Bond Markets

By Martin Fluck | Published: September 7, 2010
Increased demand for corporate bonds may paradoxically reflect falling risk appetite for bonds in general, Reuters reports today. Fund managers with mandates that mean they have to be invested in bonds, are looking to park the money in the least risky option. So they’re pulling money out of overbought government bonds and investing in high yield corporate bonds. This way, bond funds will lose relatively less money!
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Fund managers face exodus out of bonds

By Martin Fluck | Published: September 5, 2010
Let’s face it, it’s time to get real on bonds. Ultra loose monetary policy always risked creating new asset bubbles, and bonds seem to be in serious bubble territory, now that record flows into bond funds have pushed returns to such low levels that only serious deflation can possibly justify these investments.
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