Given the ongoing volatility in fixed income markets, it’s time to once again to take a look at performance. The chart below shows where we stand on a year-to-date basis for major asset classes from a USD investor’s point of view.Note: returns vary bas…
Capital is returning to certain fixed income sectors. Fund flows are quite uneven however, with the corporate sector remaining investors’ favorite. In particular, high yield bonds have recouped a great deal of the recent outflows.Source: Goldman SachsI…
Spooked retail investors are exhibiting complete capitulation in their bond portfolios. They have been dumping fixed income assets, particularly munis in record amounts.Source: DBAnd the proceeds are ending up in money market funds – at the same time a…
This has been one of the worst months for fixed income assets in years. Active investors are dumping bonds of all types. Here is what the performance looks like over a period of a month (through today).A great deal of this selling has been forced by ET…
Last year we discussed just how frothy the US fixed income valuations have become (here and here). Now in a matter of several weeks, the US bond markets have wiped out a year’s worth of gains and then some. That includes all the interest income.In…
Investors who oversee more than $3.2 trillion expect Spain to become the fourth euro member to need external funding as borrowing costs surge to levels…
Bond Spreads Soar as JPMorgan Goes 'Underweight': Credit MarketsBusinessWeekFixed-income strategists at JPMorgan Chase & Co. said in a report to clients dated May 18 that they expect both investment- grade and high-yield debt to underperfor…
BloombergBond Spreads Soar as JPMorgan Goes 'Underweight': Credit MarketsBloombergFixed-income strategists at JPMorgan Chase & Co. said in a report to clients dated May 18 that they expect both investment- grade and high-yield debt to under…
The following is an extended excerpt from my friend Lee Adler’s Wall Street Examiner Professional Edition. Since we all know that liquidity is key to the market, I thought this report might be of interest, especially since his conclusion&nbs…
The composite liquidity indicator downticked last week on small declines in most of its components. We know that the downtick in the Fed’s pumping to…
