Not exact matches
A spike in
bond yields and a clear change of direction
from central banks means there isn't a lot of value in global
bond markets, a
fund manager told CNBC on Tuesday.
Instead of financing Social Security and Medicare out of progressive taxes levied on the highest income brackets — mainly the FIRE sector — the dream of privatizing these entitlement programs is to turn this tax surplus over to financial
managers to bid up stock and
bond prices, much as pension -
fund capitalism did
from the 1960s onward.
Overall North American equity recommendations were downgraded to 67.8 percent
from 69.1 percent, the lowest since December 2014, and
fund managers» preference for North American
bonds were cut to 70.0 percent, the lowest in seven months.
If I am right that equity
fund managers are fully allocated to stocks now, the only way we can get excess gains in the stock market is if new liquidity is created by bank lending, or liquidity is transferred
from the
bond market to equities.
Portfolio
managers and traders
from the world's largest pension
funds, asset
managers and insurance companies also use
bond ETFs.
Hence the
fund managers adopting Duration strategy invest in Long Term
bonds so that they can benefit
from any fall in interest rates.
Investors and
fund managers search for yield, extend maturities, reach for lower credit quality and shift assets
from short term floating rate money market
funds to
bonds,
bond funds and similar investments.
Analysts, mutual -
fund managers and other forecasters are telling investors to expect lower returns
from stocks and
bonds in 2016 than in past years.
The tally is partial because we tend to exclude vanilla
bond funds and index
funds from the tally, since the
managers in such
funds make relatively modest differences in the
funds» performance.
@Jerry, I agree that today the main risk in
bonds is duration risk (AKA interest - rate risk)-- last weekend's Barron's has an interview with the UBS Wealth Management top
managers pointing out this means convincing investors to switch
from Treasuries and investment - grade corporates to well - selected junk (HYLD is a jewel there — DO N'T go for index
funds in
bonds, very differently
from ones in stocks they make no sense... where's the sense in wanting to lend more to companies which are more indebted?!
As central banks move away
from ultra-loose monetary policy, and the global economic expansion matures,
bond fund managers will need to ensure their portfolios draw on a truly diverse range of sources of return and carefully consider portfolio risk if they are to generate yield in the current market environment.
The theme picking part generally results
from the
manager's decision to focus on a particular sector or industry of the economy, a world region or country, a class of securities (stocks,
bonds, commodities, etc.), and similar factors that can largely explain the performance of the analyzed
fund or portfolio.
From a recent interview with Bill Gross,
manager of the Janus Global Unconstrained
Bond fund: Years of easing by central banks mean that interest rates in most of the developed world will fluctuate narrowly.
Portfolio
managers and traders
from the world's largest pension
funds, asset
managers and insurance companies also use
bond ETFs.
The only problem now is that when all the big
fund managers will decide to withdraw
from the
bond market then we shall see a steeper jump as Government of Canada is not likely to intervene.
This study investigates the unique aspects of closed - end
bond funds using characteristics and performance data mostly
from 1996 - 2006 for two samples: (1) 54 pairs of closed - end and open - end
bond funds matched for
manager,
fund family and type of
bond fund; and, (2) 332 closed - end
bond funds.
Gross,
manager of the world's biggest
bond fund until he unexpectedly left Pimco on Sept. 26, is running the Unconstrained Fund out of a rented office a five - minute walk from Pimco's headquarters in Newport Beach, Califor
fund until he unexpectedly left Pimco on Sept. 26, is running the Unconstrained
Fund out of a rented office a five - minute walk from Pimco's headquarters in Newport Beach, Califor
Fund out of a rented office a five - minute walk
from Pimco's headquarters in Newport Beach, California.
Because
managers Dan Fuss and Kathleen Gaffney typically own a large helping of high - yield, or junk,
bonds (those rated double - B or lower), as well as
bonds from developing nations, the
fund took a hit when investors bailed out of anything smacking of risk during the financial crisis and rushed into Treasuries.
Mutual
funds: These popular investments pool money
from different investors, which is then put in a single portfolio of stocks and
bonds which is overseen by an investment
manager.
To begin with, there is no value added
from active management, because all the
fund managers have only a handful of
bond issues to choose
from.
Instead, we're interested in mutual
funds (a collection of stocks and
bonds from a variety of companies, selected by a
fund manager) and index
funds (the entire market, in its category).
Racicot says the best
funds are the ones where the
manager is free to move
from government to corporate
bonds.
PIMCO Total Return
Fund leverages the firm's time - tested investment process, vast global resources and expertise of three industry - renowned portfolio
managers to actively seek diverse sources of returns
from higher - quality, intermediate term
bonds.