Mis-rated bond funds may be misleading investors
Increasing bond market illiquidity may be causing investors to buy funds with miscalculated ratings, according to Fundhouse.
Increasing bond market illiquidity may be causing investors to buy funds with miscalculated ratings, according to Fundhouse.
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With liquidity shrinking, volatility rising and the spectre of a first rate hike since 2009 looming ominously, it would be understandable to think that new bond fund launches would be few and far between.
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Increasingly nervous fund managers are swiftly pulling money out of equities funds in favour of cash, according to June’s Bank of America Merrill Lynch fund manager survey.
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Being right, but far too early, must be reclassified as just being wrong for a very long time, says Justin Oliver, deputy CIO at Canaccord Genuity Wealth Management. But the question is, is the government bond market one of those cases?
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The events of recent weeks could lead investors to draw a stark conclusion; there is no such thing as a ‘safe haven’ in investment terms any more.
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Benchmark 10-year bond yields in the eurozone have more than doubled since the end of April, when they reached an all-time low.
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Hermes Investment Management is seeking to bypass potential medium-term market volatility with the launch of an absolute return credit fund.
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Bank of America Merrill Lynch has warned that bond markets are ‘starting to crack’ following the largest weekly outflows from the asset class in 18 months.
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The concept of daily liquidity for bond funds could soon be tested like never before if some of the more pessimistic market commentators are proved right.
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Russell Investments has appointed Van Luu as head of currency and fixed income strategy.
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As the longest day of the year approaches investors may well be struggling to work out how they should position portfolios for the summer markets.
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37% of the average conservative model portfolio was allocated to bonds in Q1 2015, Natixis research has revealed.
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