After years of bond fund inflows and fundsters racing to launch the latest hot fixed income products, is the boom over? Last week, U.S bond funds suffered their second-worst withdrawals in more than twenty years.

The blow came thanks to speculation about a coming end to the Federal Reserve’s bond purchases sent fixed-income markets lower, Bloomberg reports.

The exact damage done? Investors yanked $9.1 billion from fixed-income mutual funds and exchange-traded funds, according to Lipper. Corporate high-yield funds saw redemptions of $3.2 billion.

Upon hearing the news, Bill Gross, who last month predicted that the three-decade bull market in bonds had come to an end in April, stated that he’s sticking to high-quality bonds as market risks are rising.

For more, see the full coverage on Bloomberg and the Wall Street Journal.  

Edited by: Nicole Spector


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE