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Investors Pour Cash into Risky Bonds Despite Stock Rally
Some of these investors need higher yield to cover their living expense. Timing-wise this is not so great since junk bonds now yielding only 5%.
Now that many central banks are also lowering their rates to simulate their economies. Going forward the expected return on bonds will be disappointingly low. That is one of reason that Dan Fuss of Loomis Sayles Bond is investing a portion of the fund in equity.
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Now that many central banks are also lowering their rates to simulate their economies. Going forward the expected return on bonds will be disappointingly low. That is one of reason that Dan Fuss of Loomis Sayles Bond is investing a portion of the fund in equity.