Economic observers and money managers have faced a confusing environment since last summer, when then-Chairman Ben Bernanke shook the complacency of the market and signaled a tightening. Markets are made at the margin, and in this case the tightening, in … Read more
Leave a Comment Retail investors are currently pouring money into “bank loan” funds at a record rate, and the longer term implications are cringe worthy. The popularity and rationale for investor interest has some merits, but only on the surface. The reasoning goes … Read more
5 Comments Value in the fixed-income markets, as in other asset classes, is driven in large part by fear and greed. The easy monetary policy communicated to the market through “QE infinity” in fall 2012 fueled a chase for yield that was already strong. … Read more
9 Comments The rapid selloff in the US Treasury market has come as a surprise to many, including such famous bond investors as Bill Gross, CFA, and Jeffrey Gundlach. As the chart below shows, 10-year yields on US Treasuries (10yr UST) are about 130 … Read more
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The rise in interest rates over the past few months has led some observers to pronounce an end to a long bull market in bonds. The yield on Treasury bonds maturing in 10 years jumped more than 100 basis points, … Read more
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Many of us are familiar with the song that begins, “Money makes the world go round.” As a card-carrying CFA charterholder and a recovering numbers cruncher, I will warrant that is how all too many measure the cycles of an individual’s, … Read more
Leave a CommentAs the fifth anniversary of the financial crisis approaches, financial products that start with a “C” and end with an “O” still trigger fear and trepidation in investors. This alphabet soup of products ― including collateralized debt obligations (CDOs), collateralized … Read more
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It only took a small backup in U.S. Treasury (UST) rates ― 10-year UST rates moved from 1.58% in early December to ~2.00% today ― for pundits to speculate on whether rates will drastically increase. Observant readers will have noted … Read more
12 CommentsLoomis Sayles is undeniably one of the pre-eminent names in the world of bond funds. The flagship $22 billion Loomis Sayles Bond Fund has returned 10.07% annually over the last 10 years, beating the Barclays Capital U.S. Aggregate Bond Index … Read more
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Few bond fund managers attract as much attention as DoubleLine Capital’s Jeffrey Gundlach. His firm has seen its assets under management grow to more than $45 billion in just over two years since its founding. Although these assets span a … Read more
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