Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Investors Money Leave Crowded Bank Loan Funds After 95 Weeks Of Inflows
Umm ... Wonder how much of the exodus is related to the fact other types of bonds have outperformed? Charles posted information showing (traditional) bonds have had a good year, outpacing stocks. High yield has continued to be hot. Even EM bonds have rebounded. Sounds more to me like money rotating to the hottest fixed income sectors.
Suspect people poured into floating rate because of all the hype in recent years about rising interest rates - some of the hype Fed-induced. If one isn't overly concerned about rising rates, than there's little reason to hold these. They won't outperform traditional bonds during a period of stable rates. They shouldn't outperform high yield funds either during good economic times. FWIW
Its usually better to be early than late. I've been in a closed end floating rate fund JRO for over 2 years now and just fine. Its been part of my fixed income positions.
Comments
Have a good wked, Derf
Suspect people poured into floating rate because of all the hype in recent years about rising interest rates - some of the hype Fed-induced. If one isn't overly concerned about rising rates, than there's little reason to hold these. They won't outperform traditional bonds during a period of stable rates. They shouldn't outperform high yield funds either during good economic times. FWIW