#Bonds, for generations a staple holding in a mixed
#portfolio, in many cases now guarantee owners a modest loss. They also pose the
#risk of a potentially large capital loss, leading to some of the biggest fans of these assets warning savers to sell up and switch into cash. Negative yields on bonds arise because low
#interestrates have forced investors to chase yield, driving up the prices of income-generating assets and in turn crushing their yields.
#Cash is the answer for many professional portfolio managers, with cash positions reaching levels unseen since the period after Lehman crash in 2008, according to the latest of regular surveys by Bank of America Merrill Lynch. When quizzed on why cash levels were high,
#fundmanagers said they had a bearish view on markets and prefer cash over low-yielding equivalents. What’s more, 82% of the managers believe bonds issued by developed markets are too high. But the problem is spreading out into other assets, as investors crowd into high-quality stocks, US and European
#corporatebonds and
#emergingmarketbonds.
#BondMarket #DebtMarket #BondTrading #FinancialMarkets #FixedIncome #SovereignBonds #GovernmentBonds #BondYield #HighYieldBonds #NegativeYieldBondsOnce safe bonds now 'offering only risk', so where should you invest?
http://www.telegraph.co.uk/investing/bonds/once-safe-bonds-now-offering-only-risk-so-where-should-you-inves/
