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Junk Bond Funds----What Record Outflows Are Telling Investors
FYI: Investors pulled a record $7.1 billion from junk bond funds in the second week of August, according to the Lipper U.S. Fund Flows report. The massive outflows — which are the biggest since Lipper records began in 1992 — also included the largest exodus from stock funds and U.S. stock ETFs since February. Regards, Ted http://investorplace.com/2014/08/junk-bond-funds-outflows/print
Seems to me I recall from WSJ a few days ago something on the same theme. Specifically, though, the Journal article said individual, retail investors were/are piling out of HY bond funds. Institutional investors are snapping them up, at something of a discount, in turn... I KNOW I read that.
John- I tried Ted's link just for the heck of it and it did work from here. Go figure. Cookies are evidently not an issue, as I checked my browser and it is not storing any from that site.
Hold on- I see the situation: Ted's link above works fine, but the one from his previous post, which you provided the link to, does not work. Sheesh!
Additional edit: The Google link to the WSJ does not work, as you mention, but that same Google return provides a second link, to "Indexology", which does. Here is that link.
With respect to the WSJ links, I have to tell you that even though we have been print subscribers for some 30 years, the bastards won't give us access to the website. That sucks! I guess Murdoch needs the pocket change.
@Old_Joe, As a former paperboy who had the "privilege" of delivering to the editor of the paper I learned early on editors don't tip. In my case, I couldn't even collect for the cost of the paper.
Switching from Google.ph to the regular Google.com gave me access. Copyright differences? Who knows.
Just now Bloomberg had a headline on the tube that Yellen hints the Fed may raise rates due to better jobs numbers. Just the other day the headlines said Fed will keep rates low for the foreseeable future.
There's this from Aug 14, here at MFO. During the sell-down, none of our active managed HY funds moved below a -2% retreat for the time frame. The return, on average for these funds for the past month is about +.5%.
Yup. Excerpt: "Last week alone, $2.6 billion in Asian junk bonds were issued—making it the busiest week for issuance of debt below investment-grade this year, pushing the total so far this year to US$17.8 billion, according to Dealogic, a data provider. Issuers last week included Indian energy company Greenko Group PLC and Chinese developer Modern Land (China) Co.
The surge contrasts with events in the U.S. There, junk bonds have been sold off as investors reconsider following a rally, spurred by rising geopolitical risks and concerns that eventual interest-rate increases by the Federal Reserve could dent the attraction of fixed-income assets." (Dated 30th July, '14.)
With respect to the WSJ links, I have to tell you that even though we have been print subscribers for some 30 years, the bastards won't give us access to the website. That sucks! I guess Murdoch needs the pocket change.
Comments
http://www.mutualfundobserver.com/discuss/discussion/15122/big-investors-snap-up-junk-bonds#latest
Hold on- I see the situation: Ted's link above works fine, but the one from his previous post, which you provided the link to, does not work. Sheesh!
Additional edit: The Google link to the WSJ does not work, as you mention, but that same Google return provides a second link, to "Indexology", which does. Here is that link.
Good grief!
http://m.asia.wsj.com/articles/big-investors-snap-up-junk-bonds-1408323790?ref=/news-fixed-income-bonds
@Crash, I believe you. I keep seeing headlines here that say one thing one day and the opposite the next.
Click on Ted's link, then click on comments...scroll back up and the article appeared for me...weird, but effective.
How about this one?
http://m.asia.wsj.com/articles/asian-borrowers-gaining-upper-hand-in-bond-sales-1406716576?mobile=y
As a former paperboy who had the "privilege" of delivering to the editor of the paper I learned early on editors don't tip. In my case, I couldn't even collect for the cost of the paper.
It was "aut facite"...latin for "do it or else".
Just now Bloomberg had a headline on the tube that Yellen hints the Fed may raise rates due to better jobs numbers. Just the other day the headlines said Fed will keep rates low for the foreseeable future.
This seesaw reporting is giving me a whiplash.
During the sell-down, none of our active managed HY funds moved below a -2% retreat for the time frame. The return, on average for these funds for the past month is about +.5%.
The surge contrasts with events in the U.S. There, junk bonds have been sold off as investors reconsider following a rally, spurred by rising geopolitical risks and concerns that eventual interest-rate increases by the Federal Reserve could dent the attraction of fixed-income assets."
(Dated 30th July, '14.)
http://online.wsj.com/home-page?_wsjregion=na,us&_homepage=/home/us