Tuesday, June 25, 2013

Bond Fund Returns Could Shock Jittery Investors

Bond Fund Returns Could Shock Jittery Investors: "Corporate bonds, which till then had gained 0.72% for the year based on the Barclays investment-grade index, have now lost 3.74% in 2013 - a staggering 450bp U-turn in just four weeks."
The first-ever bonds from Apple, for example - US$17 billion issued at the end of April - have shed nearly three-quarters of a billion dollars in value since then.
'via Blog this'"This is not going to be a situation where people will look back and think: wow, it was the end of the cycle, we should have sold," said Ashish Shah, head of global credit investment at AllianceBernstein.
"This is a buying opportunity."

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