If followed, and this has been followed by many
institutional bond investors, this would result in falling long - term yields, particularly now when economic growth is weak globally.
The fact that investors bought both demonstrates the extent to
which institutional bond buyers have accepted social and environmentally responsible behavior by corporates as actions which should be funded.
For example, a
large institutional bond investor may use the Industrial Bond Average as a benchmark against which to measure his or her performance in the bond market.
If you build a strong personal connection,
the institutional bond will grow and be sustained.
I'll give you one practical upshot for now, if you are
an institutional bond investor: go long 10 - year Treasuries and short 7 - year.
When I was
an institutional bond manager, competing against few others, but larger others, that was more important.
When I was
an institutional bond manager, I would watch the results of trading on the slow days, because it would give a clue to what the «big guys» were doing.
For example,
an institutional bond fund manager who invests in municipal bonds may use one of the municipal bond indexes to measure his or her performance.
After 9/11/2001,
institutional bond investors did a purge of many risky sectors of the bond market; there was a sense that the world had changed dramatically.
Got ta do more research; this would be a lot easier if I were back to being
an institutional bond manager, and had a better sense of the bond market pulse.
This will be the post where I cover the biggest mistakes that I made as
an institutional bond and stock investor.
Institutional bond investors have no lack of research sources to guide them.