MutualFundWire.com: The End of the Bond Fund Boom May Be Nigh
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Monday, December 24, 2012

The End of the Bond Fund Boom May Be Nigh


The bull market for fixed income is over 30 years old, and the current crop of investors may be in for a rude awakening when it finally turns sour, according to the Wall Street Journal.

The publication notes that since the end of 2007, there has been growth of 101 percent, or $1.7 trillion, in assets held by bond mutual funds in the U.S., according to the ICI. And that doesn't include several hundred billion dollars more that has poured into exchange-traded funds such as the iShares Investment Grade Corporate Bond ETF [profile]. During the same period, assets in stock mutual funds have dropped by 11 percent, or about $715 billion.

However, the article argues that a drop in bond values may be much more alarming and yet easier to act upon today for bond investors who generally own them through mutual or exchange-traded funds.


Printed from: MFWire.com/story.asp?s=42467

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