FYI: For decades, bond funds delivered not only decent income but also steadier returns than stocks. Now investors fear that the great run is over and a great bust is on the way. Bond yields are ultralow and set to jump higher, the thinking goes, and rising rates mean lower bond prices.
To make matters worse, fund managers are also finding it tougher to find buyers when they want to sell bonds. That has investors heading for the exits. They pulled more than $8 billion out of bond mutual funds and exchange-traded funds in September, according to Morningstar.
Elaine Stokes says these fears may be overdone. She is a portfolio manager at the $19.7 billion Loomis Sayles Bond fund, which invests in everything from Treasurys to high-yield bonds issued by companies with weak credit ratings to Canadian debt. She spoke recently about how investors should view their bond funds. The interview has been edited for length and clarity.
Regards,
Ted
http://bigstory.ap.org/article/27ad72875a144fe99a15a3601f4b4541/fund-manager-qa-loomis-sayles-elaine-stokes-bond-fears
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wagerslosses on their returns (specifically, on their dvd payouts, which have turned quite low) but little explanation for why they are continuing to take that ride vs. going with an alternative plan under the circumstances. I'm getting annoyed; maybe it's time for a trim.http://www.loomissayles.com/internet/InternetData.nsf/0/C1BA103433E9682085257E15007F20F1/$FILE/Multisector-Q&A-Oct-2015-1.pdf